In a remarkable development, cryptocurrency derivatives trading has skyrocketed to approximately $85.7 trillion in 2025, averaging around $264 billion daily, according to data provided by the liquidation tracker CoinGlass. This significant surge has positioned derivatives trading at the forefront of crypto activity, leaving a profound impact on global markets.
Market Concentration and Exchange Share
Dominating the derivatives landscape, Binance managed a staggering volume of approximately $25 trillion, equating to nearly 29% of worldwide trading. Other major players included OKX, Bybit, and Bitget, each contributing between $8 trillion and $10 trillion to the market. Collectively, these four exchanges represented about 62% of global derivatives trading, highlighting a pronounced market concentration where a select few platforms dictate the rhythm of the market.
Such concentration implies that any significant disruption at one of these exchanges could swiftly reverberate through the broader market, raising concerns about systemic vulnerabilities.
Crypto: Institutional Pathways Expanded
The trading landscape has evolved beyond mere retail speculation, with institutional engagement becoming increasingly prominent. The listing of spot ETFs in the United States, the establishment of options desks, and compliant futures trading have collectively bolstered institutional activity. Notably, the Chicago Mercantile Exchange (CME) surpassed Binance in Bitcoin futures open interest in 2024 and successfully maintained that position throughout 2025.
This influx of institutional participation has led to a shift in trading strategies, with many institutions now utilizing derivatives for hedging and basis trades, rather than pure speculation. Consequently, pricing patterns have started to resemble those of traditional financial markets, even as new risks loom in the background.
Open Interest and Market Swings
Open interest in derivatives began 2025 on a low note at approximately $87 billion after a significant round of deleveraging in the first quarter. However, it witnessed a robust ascent over the following months, reaching a record high of $236 billion on October 7.
An unexpected downturn early in the fourth quarter wiped away over $70 billion in positions, amounting to nearly one-third of the open interest at that time. Nevertheless, despite this shock, the year-end open interest remained elevated at $145 billion, reflecting a 17% increase compared to the year’s start.
Bitcoin Price Action
At the same time, Bitcoin’s price struggled to break the $90,000 threshold, hovering around $89,950. Meanwhile, US-listed spot Bitcoin ETFs experienced net outflows, which some analysts argued undermined the much-touted institutional interest. A record-sized Bitcoin options expiry took place on December 26, further influencing the price to stay within a tight range.
Sentiment and Forced Liquidations
Despite the widening access to cryptocurrency products and more regulated trading avenues, overall sentiment remained cautious among investors. An estimated $150 billion in forced liquidations occurred throughout the year, with a significant portion happening on October 10 and 11, when over $19 billion was liquidated in just 48 hours.
The data for 2025 paints a picture of a maturing market characterized by expansive growth and heightened institutional involvement. While trading volumes and product diversity have flourished, so too have the channels through which market shocks can propagate.
Featured image from FXLeaders, chart from TradingView
