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The 2024 end-year report by Deribit Derivative Exchange, one of the largest such exchanges globally, has proved that the crypto market in general and the spot trading segment in particular are still alive and growing.
According to the just-released annual financial report, the firm’s trade volume increased from $608 billion in 2023 to over $1.1 trillion in 2024, representing a year-over-year growth of over 95%.
Deribit Derivative Exchange Licensed in Dubai
Notably, the trade volume breakout happened as the company implemented FATF Travel rules and relocated to the UAE following the granting of a license by Dubai’s Virtual Assets Regulatory Authority. Commenting on the results, Deribit Derivative Exchange Chief Executive Director Luuk Strijers stated:
“Deribit saw an increase in activity throughout the year, particularly in Q4 as institutional investors’ demonstrated heightened optimism around the US presidential election, as well as the $100k Bitcoin bull run that followed.”
December 2024 was the most profitable Months for Exchanges
The report by Deribit derivative exchange revealed interesting facts, including that its highest volume day coincided with the announcement of the nomination of US’s pro-crypto President Donald J Trump. On November 22, the company recorded an all-time-high 24-hour rolling volume exceeding $14.8 billion.
Moreover, the protocol’s open interest, referring to the number of spot trading options still open at the close of a trading day, tapped an all-time high on November 28 at around $48 billion, at a time when BTC’s price was rising towards the magical $100K mark.
Besides that 95% increase in the company’s total volumes in 2024, Deribit exchange reported a 99% increase in its notional options trading volumes. Surprisingly, the total options volumes during Q4 2024 alone exceeded $243 billion.
The report further indicates that spot trading was the fastest-growing segment of the company’s offerings. Launched in 2023, the spot trading segment of the platform grew by a staggering 810%, with the total turnover skyrocketing from $837 million in 2023 to $7.6 billion in 2024.
Spot Trading is Popular with New Traders
Deribit is among the world’s largest platforms offering Bitcoin and Ether spot trading. According to a recent Bloomberg report, the firm has drawn interest from potential partners and is working with financial advisers to review the available opportunities. People familiar with the negotiations have stated that the firm, worth between $4 billion and $5 billion, is working with Financial Technology LLC.
Spot trading refers to a system within the cryptocurrency market that allows the buying and selling of crypto assets at their current market prices. The method is popular with new traders entering the crypto space because it is simpler to implement compared to traditional trading, and the traders get to own the crypto they acquire. The primary aim is to acquire crypto assets at the prevailing market price before selling them later at a higher price to generate a return on investment.
Conclusion
Apart from the Deribit derivative exchange, there has been notable growth during the last year following the licensing and launch of Bitcoin and Ethereum ETFs that allowed spot trading. A report by The Block Research shows that December 2024 was the most successful year for most exchanges since November 2021. In addition to being approved by Dubai’s Virtual Assets Regulatory Authority, Deribit is eyeing similar spot trading licenses from France and Brazil.
Frequently Asked Questions (FAQs)
What is spot trading?
Spot trading is a popular crypto investment method that enables traders to easily invest in and trade financial assets.
How do spot traders make money?
Spot traders make money when they buy crypto assets at a specific time and sell them later when their prices increase. Profits or losses are only made after a trader sells off what they had bought.
What are the most popular cryptos in the spot market?
While there are many crypto assets in the market, the top 50 assets by market capitalization are the most popular ones preferred by spot traders. Bitcoin and Ethereum are the most favored ones.
