Perpetual Futures Contracts on Coinbase
- Trading volumes in perps on Coinbase’s international exchange have normalized to a daily average of around $120M over the last five days.
- A significant two-day surge in volumes to $260M and $287M occurred on August 17 and 18.
- The daily perp trading volumes on Coinbase’s International Exchange have averaged $127M in August, a 64% increase over the last two months.
Disparity with Non-US Exchanges
- Non-US exchanges have seen a decline in net daily trading volumes in BTC and ETH perps by over 31% between June and August.
- Growth disparity can be attributed to Coinbase International Exchange’s recent launch and a lack of volatility in recent months.
- The total open interest for BTC and ETH perps across non-US exchanges has declined from $17.8B to under $12.2B.
- Additional large liquidations should be limited as OI weighted funding rates have returned to positive territory.
Institutional Participation in Traditional Futures
- Institutional participation in CME ETH contracts has increased with a 10.8% increase in open interest.
- A 2.5% decline was observed on non-US exchanges (excluding Coinbase) to $482M.
Hot Take
The analysis by David Duong highlights the normalization of trading volumes in perpetual futures contracts on Coinbase, as well as the disparity with non-US exchanges. The decline in volumes and open interest on non-US exchanges can be attributed to various factors such as the launch of Coinbase International Exchange and lack of volatility. Furthermore, institutional participation in traditional futures, specifically CME ETH contracts, has shown signs of growth. Overall, these insights provide valuable information for crypto readers looking to understand the current state of the crypto futures market.
By
By
By
By