Binance's August futures trading volume surpasses $2.6 trillion… "Signal of institutional return"

The world's largest cryptocurrency exchange Binance's futures trading volume last month was reported to have reached the highest level this year.

Arab Chain, a CryptoQuant contributor, said on the 4th (local time) via CryptoQuant, "Binance's August futures trading volume was counted at 2.626 trillion dollars (about 3,660 trillion won)," adding, "It is the highest monthly trading volume so far this year." Last month's futures trading volume was about 74 billion dollars (about 103 trillion won) more than July this year (2.552 trillion dollars).

Arab Chain cited the return of institutional investors and the expansion of open interest (OI) as the reasons for the surge in volume. Arab Chain analyzed, "ETF flows have stabilized somewhat, and institutional investors have begun to participate in the futures market again," and "open interest has also increased sharply along with volume, showing that many new positions have entered."

Last month's Bitcoin (BTC) price volatility is also analyzed as a factor behind the surge in volume. Arab Chain said, "Bitcoin showed a sharp rise in early last month and then experienced a rapid correction, providing an ideal environment for short-term speculators," and "the slowdown in spot trading on some exchanges, which led investors to turn to futures products, is also a cause."

Arab Chain emphasized, "Overheated flows often appear ahead of a correction." Arab Chain said, "For the futures market's bullish trend to continue, inflows of stablecoins and cash supporting the spot market are essential."