Crypto Derivatives Volume Hits $86 Trillion in 2025, Liquidations Top $150B

Core Insights - The crypto derivatives market reached nearly $86 trillion in total volume in 2025, driven by institutional adoption and significant stress tests [1] - Daily average turnover was approximately $265 billion, establishing derivatives as the main venue for price discovery [1] Market Leadership - Binance led the market with $25.09 trillion, accounting for 29.3% of global volume, while the top four exchanges, including OKX, Bybit, and Bitget, held a combined market share of about 62.3% [2] - The market has shifted from a retail-driven model to one dominated by institutional hedging, basis trading, and ETF-related flows [2] Market Fragility - The market faced severe stress tests, with total forced liquidations estimated at $150 billion for the year [3] - An October deleveraging event, triggered by President Trump's announcement of 100% tariffs on Chinese imports, resulted in over $19 billion in liquidations within two days [4] Institutional Capital Impact - The influx of institutional capital, facilitated by spot ETFs, has permanently changed the market structure [5] - The Chicago Mercantile Exchange (CME) has gained dominance in BTC derivatives, surpassing Binance in futures open interest during significant periods [5] Structural Shifts - While Binance continues to command volume, the CME's leadership in open interest indicates a structural shift in the market [6] - The market is now highly sensitive to macroeconomic shocks, with leverage chains capable of causing cascading liquidations, as evidenced during the October tariff-driven selloff [6]