Cryptocurrency derivatives reach $85 trillion: A sign of market maturity

The year 2025 will be remembered as a historic milestone for the cryptocurrency derivatives market. Not only did it achieve a record trading volume of $85.7 trillion, but this figure also reflects a deeper fundamental shift: from a market manipulated by individual investors to a mature derivatives financial system dominated by large institutions.

Leading the flow of capital into the market

According to data from CoinGlass, the average daily trading revenue has risen to $264.5 billion, a record high demonstrating the market’s liquidity. However, this impressive figure does not originate from retail traders but from managed tools, including Bitcoin spot ETFs and products traded on the Chicago Mercantile Exchange. These channels are becoming the main link for institutional capital, gradually replacing the previous unofficial trading routes.

Open interest scale reflects growing confidence

Last year, the total open interest in derivatives products peaked at $235.9 billion and then settled at $145.1 billion by the end of the year. The 17% increase from the beginning of the year clearly indicates an expansion in trading activity. Notably, liquidity concentration in the four largest exchanges (accounting for 73% of open interest) reflects a trend toward regulation, where traders prefer platforms with high reliability and deep markets.

From short-term speculation to long-term holding

Another notable signal is the 15% decrease in Bitcoin reserves on exchanges, from 2.98 million BTC to 2.54 million BTC. This indicates a shift by investors from short-term trading to long-term holding strategies, an expression of long-term confidence in the market.

Liquidation events: When risk concentrates

The total value of liquidated positions in 2025 exceeded $150 billion, with the peak on October 10 when losses reached $19 billion in a single day. Statistics show that 85-90% of losses come from long positions, reflecting the weakness of trend-following traders. These events highlight that derivatives are not only price discovery tools but also a primary source of volatility and systemic risk across the entire cryptocurrency market.

Future: Maturing but also more complex

Analysts forecast that the development of the cryptocurrency derivatives market will heavily depend on macroeconomic conditions and global regulatory policies. With the emergence of new indices from CME Group to track implied volatility, the market continues to specialize. However, the biggest challenge remains how to minimize systemic risk in an increasingly concentrated and complex market.