According to the latest data from blockchain analytics firm Glassnode, BTC perpetual futures are increasingly becoming the tool of choice for traders, now showing they dominate 92.4% of total futures volume, up from 75% dominance in December 2020.
In terms of BTC futures open interest, the current open interest in the BTC futures market is hovering at around $15 billion, significantly lower than the peak of the bull market. The ratio of perpetual futures and traditional expiring futures is 2:1, but since Its dominance has risen from 50% to over 66% since December 2020.
This means that although the current Bitcoin derivatives market’s yield, implied volatility and trading volume continue to be compressed, resulting in a decline in the total amount of capital inflows, the on-chain trading volume is still sluggish, but a more constructive mid- to long-term fundamental trend start to form.