Silver Supply Crisis Looms as Binance Hits $70 Billion Volume in Precious Metals Like Gold

Binance's recently launched perpetual futures for gold (XAU/USDT) and silver (XAG/USDT) have rapidly exceeded $70 billion in trading volume, indicating a strong trader appetite for continuous, on-chain exposure to precious metals outside traditional market hours. Concurrently, physical silver markets are tightening, with COMEX silver inventories rapidly declining due to significant contract rolls, leading some analysts to warn of a potential physical shortage by late February if inflows do not materialize. The futures curve structure is also signaling immediate physical demand, as the March-May spread is approaching backwardation when adjusted for financing costs. This structural shift toward 24/7 trading is further emphasized by CME Group's plan to introduce round-the-clock trading for its cryptocurrency futures and options, mirroring the native functionality of crypto exchanges like Binance. The combination of surging derivatives activity, shrinking physical supplies, and heightened gold volatility suggests markets are entering a new phase characterized by potential scarcity and expanded financial access to metals.

(Source：BeInCrypto)