The cryptocurrency market is seeing a recovery this July, with Bitcoin (BTC) rising by 18.4% and Ethereum by 64.7%. The upsurge in trading volume for Binance USD against major coins like BTC has been spectacular.
In July, the average daily volume of the BTC/BUSD pair rose by $1.49 billion (a 62.1% increase). This is more than the BTC/USD, which declined by 18.7% to $909 million daily.
The BUSD is a stablecoin backed by NYDFS, with each coin always guaranteed to have at least one dollar's worth. BUSD is an innovative new stablecoin created in collaboration with Paxos and Binance.
The CryptoCompare's July 2022 Exchange Review details that other BTC stablecoin pairs also experienced an "increase in trading volume as cryptocurrency markets rebounded."
The report also added that the average trading volume of BTC/USDT rose by 17.8% to $6.13 billion, while that of BTC/USDC rose by 23.7% to $290 million. That of BTC/BUSD rose to an all-time high of $46.2 billion. Year-to-date, the pair's volume has grown 166%.
This report also revealed that spot trading volumes across centralized exchanges declined by 1.34% to $1 trillion, the lowest level since December 2020. Derivatives trading volume has shot up to 13.4% of the total market, with $3 trillion worth occurring this year alone.
The data shows that the derivatives market now represents 69.1% of the total crypto market, up from 66% in June. In July, two of the largest cryptocurrency exchanges by volume were Binance and Atom Asset Exchange (AAX). The latter saw its numbers rise by 26.5% to $57.2 billion.
Crypto trading is down across the board this year, with many exchanges recording declines in volume. Binance saw a 12.9% decrease from January to March alone, while FTX, OKX, and Coinbase recorded a decline of 15.5%, 57.6%, and 57.2%, respectively. The AAX exchange is the only one in the top 15 in the world to see its trading volumes grow this year.
Meanwhile, the majority of altcoins dropped in price:
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)