In October, the market regained its energy, with market capitalization rising by 13%, increasing from $2 trillion to $2.3 trillion. Multiple data points suggest that retail investors are becoming more involved in trading activities.
Interestingly, instead of concentrating on spot trading on exchanges, they are favoring derivatives trading.
Retail Crypto Investors’ On-Chain Activities Increased Significantly
By analyzing Bitcoin transactions below $10,000, one can assess the demand from retail investors. Insights from CryptoQuant indicate that retail interest often contributes to the rise in Bitcoin’s price.
Read more: Top 6 Spot Trading Crypto Exchanges
In the past 30 days, retail demand has risen by 13%, reversing four months of consecutive declines. Analyst Caueconomy notes that this trend mirrors what occurred in March.
“In the last 30 days, retail demand grew by about 13%, illustrating a scenario similar to March when we approached the previous historical peak… The recent surge in Bitcoin is prompting smaller investors to re-enter trading, indicating a potential shift toward lower risk aversion,” Caueconomy remarked.
Furthermore, the number of active stablecoin addresses per week in October reached a three-year peak.
The weekly figures of active stablecoin addresses indicate a dynamic trading environment. This number consistently remained above 8 million in September, peaking at 8.6 million last week.
Surge in Derivatives Trading in October
Despite an uptick in retail on-chain activities, the spot trading volume on centralized exchanges (CEX) remained constant. Data from CoinMarketCap indicates that daily spot trading volumes across exchanges varied between $50 billion and $100 billion.
In contrast, derivatives trading volumes have risen dramatically over the last two months. As of October, total Open Interest surpassed $260 billion, marking the highest level in a year. This indicates a preference for derivatives among retail investors over spot trading.
Read More: Best Crypto Derivative Exchanges in 2024
Conversely, investor Lark Davis noted that the interest in crypto-related searches has not experienced a significant surge. This suggests that if retail investors are indeed re-engaging, their focus is primarily on derivatives trading.
“Current Google trends reveal minimal retail interest in crypto. It seems retail is inactive while institutions accumulate,” Davis observed.
Disclaimer
In accordance with the Trust Project guidelines, BeInCrypto is dedicated to impartial and transparent reporting. This news article is intended to offer precise and timely information. However, readers are encouraged to verify facts independently and seek professional advice before making any decisions based on this content. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
