Institutional exchange LMAX Digital is seeing further strong volumes as interest in crypto-based trading continues to soar. The platform, however, reported a 14 percent drop in the average daily volume on its spot market.
The ADV figure stood at $1.68 billion in February 2021, which is down from January’s $1.96 billion. A record high of over $4.38 billion in daily spot volumes was achieved on February 23.
Taking a year-over-year perspective, LMAX Digital’s turnover was six times higher that the $251 million it disclosed back in February 2020.
In terms of its aggregated monthly turnover, LMAX Digital reported $47.2 billion, which is down 22 percent from a record $90.6 billion that changed hands in the previous month. January, however, had more trading days than February.
Overall, crypto volumes enjoyed fantastic performance over the last two months. According to the latest report from Blockchain research firm, CryptoCompare, crypto spot volumes rose to $2.3 trillion in January. This was just enough to top the previous record of $1.9 trillion in December.
The report also points out that spot trading volumes on major cryptocurrency exchanges hit a daily record of over $122 billion on January 11, just as Bitcoin was building on a fresh rally that saw it more than quadruple. The previous all-time high for daily spot volume occurred on March 13, 2020, at $72.5 billion.
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The latest metrics is part of LMAX Digital’s initiative to reveal its daily trading spot volumes, potentially challenging the dominance of benchmarks administered by independent industry aggregators.
LMAX Digital is part of the foreign exchange trading business of the LMAX Exchange Group, which operates FX execution venues such as LMAX Exchange (FCA regulated MTF) and LMAX Global (FCA regulated broker).
LMAX Digital operates under similar rules and governance of its parent’s FCA-regulated multilateral facility (MTF), and its functionality is based on the venue’s existing technology stack. It offers to trade digital assets at the request of its existing institutional client base.
Simply matching buyers with sellers within an anonymous execution venue, LMAX Digital offers its users better price discovery and conflict-free execution in major cryptocurrencies like Bitcoin, Litecoin, Ethereum, Ripple, and Bitcoin Cash.
LMAX Digital also offers cryptocurrency custodian services to clients who trade on its exchange, which solves one of the major problems that have prevented institutional investors from dabbling in the virtual asset class.