Cryptocurrency Derivatives Trading Volume Hits Yearly Low: Reduced Leverage and Waning Investor Sentiment

Source: TokenPost Original Title: Cryptocurrency Derivatives Trading Volume Hits Yearly Low in December 2025… ‘Leverage Reduction and Diminished Investor Sentiment’ Original Link: https://www.tokenpost.kr/news/cryptocurrency/320797

December 2025 Cryptocurrency Derivatives Market Trading Volume Hits Yearly Low

By the end of 2025, the overall performance of the cryptocurrency market was poor, and the derivatives market also cooled down. During December, trading volumes on major exchanges hit their lowest levels this year, with investors showing a clear tendency to avoid risk.

According to data from on-chain analysis platforms, the trading volume of the cryptocurrency derivatives market in December 2025 dropped to its lowest point of the year. Data analysts pointed out that leveraged trading has contracted across the board, indicating that investors are focusing on asset defense amid bleak market prospects.

Based on trading volume data from the top 10 cryptocurrencies on major exchanges, a leading exchange still dominated the market with approximately $1.19 trillion in trading volume, but this is only half of August’s level. During the same period, one exchange recorded $581 billion, and another $421 billion, all of which are the lowest figures recorded in 2025.

Analysts stated, “The overall liquidity contraction indicates a decline in market-wide investor sentiment,” and “As leveraged trading decreases, risk appetite drops significantly.” The increase in liquidations centered around Bitcoin(BTC) and Ethereum(ETH), coupled with the lack of clear market direction, is reinforcing conservative investment behaviors.

Risk Avoidance, a Sign of Market Turning Point?

Analysts interpret this decline in trading volume as a “signal of a turning point” rather than a simple market downturn. They pointed out, “After excessive leverage is liquidated, markets often show signs of building stronger, healthier trends,” and the current situation may be part of this process.

In fact, the contraction in the derivatives market may suggest a move away from overly bullish expectations, with capital flowing into low points based on technical and fundamental analysis. From this perspective, the market contraction phase can be seen as a preparatory stage before a new upward cycle.

Meanwhile, according to data, the total market capitalization of cryptocurrencies is currently about $3.17 trillion, up 0.3% in the past 24 hours. Despite the decline in trading volume, the market still maintains a certain level of recovery momentum.