Crypto Derivatives Volume Reaches $86 Trillion in 2025, Liquidations Exceed $150B

The crypto derivatives market in 2025 saw nearly $86 trillion in total volume, with institutional adoption and stress tests shaping the year.
CoinGlass reported a daily average turnover of approximately $265 billion, highlighting derivatives as key for price discovery.
Binance led the market, processing $25.09 trillion (29.3% of global volume).
Top exchanges (OKX, Bybit, Bitget) combined with Binance accounted for about 62.3% market share.
The market shifted from retail-driven to institutional hedging, basis trading, and ETF flows.

Systemic Stress Tests Expose Market Fragility

Significant leverage chains introduced new systemic risks, leading to severe stress tests.
Total forced liquidations estimated at $150 billion for the year.
An October deleveraging event caused by U.S.-China tariff announcements resulted in over $19 billion liquidations in two days.

Spot ETFs unlocked institutional capital, altering market structure permanently.
The Chicago Mercantile Exchange (CME) surpassed Binance in BTC futures open interest due to institutional preference for regulated venues.
CME's leadership indicates a shift towards sensitivity to macroeconomic shocks, with leverage chains causing cascading liquidations.