The crypto market produced one of its most disappointing performances in the final quarter of 2025, with most large-cap assets ending the year in the red. While prices struggled to make any mark in the last few months of the year, liquidity also continued to seep out of the market.
According to the latest on-chain data, the crypto derivatives market posted its lowest trading volumes of 2025 in December. This downturn in activity reflects the shift in investors’ risk appetite, especially with prices remaining down in the last few months of the year.
Low Market Activity Signals Rising Risk Aversion: Analyst
In a Quicktake post on the CryptoQuant platform, pseudonymous analyst Darkfost revealed that December was the lowest trading month for the crypto derivatives market in 2025. According to the on-chain pundit, this decline of derivatives market activity signals a disengagement of leveraged traders.
Using a chart showing the trading volumes of the top 10 coins aggregated across several major exchanges, Darkfost highlighted a broad decline in liquidity. The broad nature of this liquidity decline confirms that the low trading volume trend is spread across the entire derivatives market.
Source: CryptoQuant
As observed in the chart above, the Binance exchange dominates the crypto futures market with approximately $1.19 trillion in trading volume in December. However, this figure is relatively low—its weakest trading activity in the past year—compared to its performance in other months in 2025. For context, Binance recorded almost double that trading volume in August 2025.
A similar trend of liquidity decline can be seen across other major exchanges. For instance, OKX recorded only $581 billion in trading volume, while Bybit was limited to $421 billion. “These levels further confirm a significant liquidity contraction in the derivatives markets, mechanically reducing risk appetite and the use of leverage,” Darkfost added.
Furthermore, the crypto analyst noted that this fall in trading volume shows how investors behave in an unfavorable market condition.
Darkfost said:
The increase in liquidations, combined with a period of heightened market uncertainty and unclear directionality, has reinforced risk aversion. In such conditions, market participants clearly prioritize capital preservation over performance.
Darkfost concluded that this level of decline in derivatives has historically often aligned with transitional phases, where the market flushes out excess leverage ahead of building a stronger and healthier trend.
Total Crypto Market Capitalization At $3.17 Trillion
As of this writing, the total cryptocurrency market stands at about $3.17 trillion, reflecting a 0.3% jump in the past 24 hours, according to CoinGecko data.
The total cryptocurrency market capitalization on the daily timeframe | TOTAL chart on TradingView
