CoinVira Insights

  Crypto prices have continued to move higher, but the structure behind those moves has become increasingly narrow. While headlines focus on price levels, trading activity tells a different story. Spot market participation has weakened, while derivatives activity now accounts for the majority of volume across major exchanges. Recent exchange data shows that crypto spot trading volume has not expanded alongside price. In both Bitcoin and Ethereum markets, spot volume remains well below levels seen during periods of broad participation. This means fewer outright buyers are involved in price discovery, leaving markets more sensitive to liquidity conditions and positioning. At the same time, derivatives markets have taken a dominant role. Perpetual futures and other leveraged instruments now represent most trading activity. This allows prices to move without equivalent capital entering spot markets. When derivatives drive price action, market behavior changes. Funding rates, liquidat...