Rising Institutional Activity Pushes Average Daily Volume to $265 Billion
Cryptocurrency derivatives markets expanded at an unprecedented pace in 2025, underscoring the sector’s growing role in global trading activity. Annual derivatives volume climbed to approximately $86 trillion, translating to an average of $265 billion in daily turnover and reflecting deeper participation from both institutional and professional traders.
A small group of platforms dominated activity. Binance accounted for nearly 30% of total derivatives volume, processing over _ $25 trillion in trades_ during the year. Other major exchanges followed, with OKX, Bybit, and Bitget each recording between $8 trillion and $11 trillion. Combined, these four venues represented more than 62% of global derivatives trading, highlighting increased concentration at the top of the market.
Structural Shift Toward Institutional Trading
The derivatives landscape evolved beyond its earlier retail-driven model. Institutional hedging, basis trades, and ETF linked strategies played a larger role, supported by regulated futures and options markets. This shift also strengthened participation in traditional venues, where compliant products gained traction.
Growth came with heightened risk. Global open interest fluctuated sharply, falling to about _ $87 billion_ early in the year before peaking near $236 billion in October. A rapid deleveraging event later erased over _ $70 billion_ in positions. Total forced liquidations for 2025 reached around $150 billion, with a significant share concentrated during October’s market shock.
The surge in derivatives activity signals crypto’s transition into a mature, high-volume financial market, while also highlighting the need for stronger risk management as leverage and complexity increase.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.