TradFi Futures Activity Surges on Crypto Exchanges Amid Geopolitical Tensions

Traditional finance perpetual futures activity has seen a significant increase on crypto exchanges, according to a recent report from CryptoQuant. The surge in demand for gold, silver, and oil amid ongoing geopolitical tensions between the US and Iran is driving this trend. Gate and Binance are leading the way, accounting for roughly two-thirds of all TradFi futures trading volume recorded so far this year.

The convergence of traditional and crypto markets is becoming more pronounced as market participants use crypto exchanges to access macro assets. Gate's dominance in the TradFi perpetual futures market can be attributed to its investments in tokenized stocks, metals, 24/7 derivatives markets, and indices. Analysts suggest that traders are increasingly turning to crypto exchanges to gain exposure through 24/7 markets.

In contrast, spot trading volume has declined on centralized exchanges, with a notable decrease in activity due to the bear market. Perpetual futures volumes have also contracted, reflecting a decline in leverage appetite. Binance and Gate dominate spot market depth, while Gate, Hyperliquid, Binance, OKX, and Bitget lead perpetual futures liquidity.