Crypto Derivatives Liquidity Plummets in December 2025 Amid Lower Trading Volumes

TLDR:

• December 2025 shows lowest crypto derivatives volumes of the year across top exchanges.
• Binance leads with $1.19T, nearly half its August 2025 trading volume.
• OKX and Bybit volumes fell to $581B and $421B, signaling broad liquidity drop.
• Traders reduce leverage amid market uncertainty, prioritizing capital preservation.

Liquidity dries up across crypto derivatives markets as December 2025 records the lowest trading volumes of the year. Data from top exchanges shows a broad decline across the top 10 coins, signaling reduced activity from leveraged traders. 

Binance remains the market leader with $1.19 trillion in monthly volume, but this figure is nearly half of August 2025’s total. Other major platforms, including OKX and Bybit, also reported notable decreases in trading activity.

Market-Wide Decline in Trading Volumes

The contraction in volumes is visible across multiple exchanges, demonstrating that the slowdown is not isolated. 

OKX recorded $581 billion in monthly trading, while Bybit handled $421 billion. These figures confirm a reduction in liquidity across the derivatives ecosystem.

Traders appear to be disengaging from leveraged positions, favoring capital preservation over high-risk strategies. As Darkfost noted on X, “Liquidity dries up across crypto derivatives markets as traders reduce leverage amid heightened market uncertainty.” 

This confirms that reduced trading activity is widespread and not limited to a single exchange.

The current market environment, combined with higher liquidations, has contributed to cautious trading behavior. 

In such conditions, market participants prioritize safeguarding capital rather than pursuing aggressive returns. These trends mirror historical patterns observed during similar market contractions.

Reduced Risk Appetite and Market Behavior

The decline in trading volumes is associated with decreased risk appetite among investors. During periods of low liquidity, traders often reduce leveraged positions to manage exposure. 

Darkfost added, “The slowdown is broad-based, affecting multiple exchanges, and reflects a disengagement of leveraged traders.”

Historical data shows that months with comparable contractions were followed by recovery phases, where liquidity gradually returned. 

This cyclical behavior reflects the mechanics of derivatives markets, where risk management temporarily dominates trading decisions.

As trading activity slows, exchanges report a lower number of leveraged positions, reinforcing a safer environment for remaining participants. 

Binance continues to dominate monthly volumes, though at reduced levels compared to earlier months. Bybit and OKX also experience similar trends, confirming the widespread nature of the slowdown.