Positive factors makes splash in derivatives area of interest on Arbitrum

Crypto derivatives trade Positive factors Community has recorded $1.6 billion in buying and selling quantity on the Arbitrum blockchain one month after launch. Initially deployed on the Polygon community, Positive factors Community runs gTrade, a decentralized margin buying and selling protocol.

The Positive factors platform permits customers to commerce monetary derivatives of varied property, together with crypto tokens, U.S. shares, and indices by way of good contract-based trades. Because it has launched on Arbitrum, Positive factors’ gTrade has generated about $1.1 million in charges on Arbitrum, distributed to those that stake the platform’s native token, GNS.

GTrade has been driving important exercise on each the Arbitrum blockchain and the Polygon community, the place it was first launched in late 2021. On the Polygon sidechain community alone, it has processed greater than $23 billion price of buying and selling quantity since October 2021.

To additional drive exercise, Positive factors Community lately launched a buying and selling competitors providing $100,000 in rewards for merchants, which can have contributed to the current spike in quantity.

The GNS token was buying and selling at $6.27 at 10 a.m. EST, up 11.5% over the previous 24 hours, based on CoinGecko information. The token has seen a 40% enhance over the previous week, with a market capitalization of $173 million.

Positive factors Community’s rise on the Arbitrum blockchain is especially noteworthy because the community serves as a Layer 2 scaling resolution for Ethereum, offering sooner and cheaper transactions whereas sustaining the safety and composability of the Ethereum community.

The platform has attracted important person exercise, notably within the realm of derivatives buying and selling protocols. With the rise of Positive factors, Arbitrum now has two widespread by-product buying and selling protocols. GMX was the primary and has to this point led the area of interest on the community.

Dwindling volumes

The uptick in buying and selling on the Positive factors Community comes as decentralized and centralized derivatives buying and selling volumes have plummeted.

Decentralized buying and selling volumes fell to about $44 billion final month from greater than $107 billion in November, based on The Block’s information. Volumes have reached about $50 billion this month, effectively under the $180 billion registered in January 2022.

As for centralized derivatives, the image is far the identical. Bitcoin futures volumes plummeted to $386.6 billion in December, down 39% month-on-month. Volumes recovered considerably this month and are at the moment above $580 billion, nonetheless effectively under final yr when volumes reached $1.4 trillion in January.

The panorama is analogous for ether futures and choices as effectively. The drop in volumes wasn’t restricted to the derivatives market, with spot volumes on centralized exchanges additionally declining. A potential clarification for the fall-off in centralized exercise could have been the collapse of FTX in November, Carlos Gonzalez, a analysis analyst at 21.co, advised The Block.

In the meantime, the ratio of decentralized to centralized trade spot commerce quantity has elevated to 14% from 12.7% final month.