The crypto derivatives market has been one of the most monitored markets. The volatility resulting in traders taking profits and some losing their funds all add to the thrill of the market. This part of the crypto industry gets very interesting when they are a large number of traders in it.
The market is not buzzing as it used to. This could be attributed to the dwindling of traders in the market. In recent times, Coinfomania reported that the total number of participants in the crypto derivatives market was 130,000 at the time. Another report also suggests a depreciation in traders as a more recent article cited a decrease from 115,000 to 53,000.
After the latter record, the market saw a little increase as the participants present in it increase above 100,000. The current status of the derivative market is a far cry from before as it currently has barely 30,000 traders available.
The lack of activity resulted in a drop of 33% in the trading volume of this sector over the last 24 hours. The total trading volume is currently estimated at a little above $91 billion as of the time of writing.
The state of crypto derivatives shows that more traders are leaving it and it is also an indication that the spot market is also facing the same problem on a smaller scale.
Regardless of the dwindling participant in the derivative sector, it could also impact the prices of the spot market. As of now, the bears are still having an upper hand in the market as they are responsible for 51.2% of the total open orders.
The bulls took a bigger hit as 63.3% of $125 million that got liquidated over the last 24 hours are from long positions. The spot market could continue its downtrend if the derivatives do not improve. We may see the global cryptocurrency market cap dip as low $2 trillion.
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