While silver inventories on COMEX continue to decline, Binance’s newly launched gold and silver perpetual futures have already surpassed $70 billion in trading volume within weeks.
The sharp convergence across metals and crypto derivatives markets signals surging demand for 24/7 synthetic exposure to precious metals.
Physical Silver Tightens as 24/7 Derivatives Demand Accelerates Across Crypto and Metals Markets
Binance recorded over $70 billion in trading volume across its XAU/USDT and XAG/USDT perpetual contracts.
It points to a strong appetite for always-on, on-chain access to gold and silver price movements. The milestone highlights how traders are increasingly turning to crypto-native platforms to gain exposure to metals without traditional market-hour constraints.
At the same time, physical silver dynamics are tightening. Silver backing futures keep falling, with the March-to-May contract roll reaching 30 million ounces per day. This pace could clear the current open interest.
The structure of the futures curve adds to the urgency. When adjusting for financing costs such as SOFR (Secured Overnight Financing Rate) and storage, the March–May spread is approaching backwardation. This condition effectively signals immediate demand for physical metal over future delivery.
In carry-adjusted terms, backwardation signals that physical silver is more valuable now than later.
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Rising futures prices can intensify this dynamic, as higher forward pricing encourages speculative buying. It also prompts producers and holders to retain physical supply in anticipation of further appreciation, pulling additional metal out of the market.