What Do Derivative Market Signals Reveal About Crypto Trading Sentiment in 2025?

Futures open interest reaches $82 billion, surpassing Bitcoin for the first time since December 2024

In a remarkable development for the cryptocurrency derivatives market, AVAX futures open interest has reached $82 billion, exceeding Bitcoin's futures open interest for the first time since December 2024. This milestone represents a dramatic shift in market dynamics and investor sentiment toward alternative blockchain technologies.

Market data reveals a significant contrast between December 2024 and current figures:

The surge in AVAX futures activity occurs despite the asset's price declining by nearly 40% since October 2025, when it traded above $30. Derivatives market share data indicates this growth is driven primarily by institutional investors seeking exposure to Avalanche's ecosystem without directly holding the asset.

The data demonstrates a fascinating market paradox: while spot prices continue their downward trend, derivatives interest has skyrocketed, suggesting sophisticated investors may be positioning for a potential reversal. This pattern differs significantly from Bitcoin, which has maintained relatively stable futures interest despite price fluctuations. Financial analysts point to Avalanche's innovative consensus protocol and Ethereum toolkit compatibility as fundamental factors attracting this unprecedented derivatives activity.

Derivative trading volume declines by 52.41% to $352.5 million, signaling reduced market interest

The AVAX derivative trading market has experienced a significant downturn in 2025, with trading volume plummeting by 52.41% to $352.5 million. This sharp decline indicates waning trader interest in leveraged AVAX positions and futures contracts. The reduction comes during a period of broader market volatility for Avalanche, whose price dropped dramatically from $30.97 in early October to just $16.13 by November 6th.

While derivative trading has contracted, overall AVAX trading volume presents a contrasting picture:

The substantial decline in derivatives trading coincided with AVAX price reaching a low of $15.00 on November 4th, nearly 90% below its all-time high of $144.96 recorded in November 2021. Despite reduced derivatives activity, the surge in overall trading volume to $25.8 billion suggests traders may be shifting toward spot trading rather than leveraged positions. This behavioral change typically occurs during periods of extreme market uncertainty, as evidenced by the market sentiment indicator showing "Extreme Fear" with a value of 20 on November 8th, 2025.

Top traders maintain cautiously bullish sentiment as ETH and major altcoins see rising perpetual contract volumes

Market data reveals a cautiously optimistic sentiment among top cryptocurrency traders as perpetual contract volumes for ETH and major altcoins continue to rise. This trend is particularly evident with AVAX, which recently experienced a significant volume surge to $25.8 billion in October 2025, indicating renewed trader interest.

The current market dynamics show a pattern of institutional investment strengthening alongside technical indicators that support a bullish outlook:

Despite the recent market-wide correction that saw $1.6 billion in liquidations earlier this week, AVAX has demonstrated resilience by forming consistent higher bottoms on price charts. This technical pattern, combined with the surge in daily active addresses (up 350%), provides substantive evidence for traders maintaining their bullish outlook.

The perpetual contract volume increase indicates professional traders are positioning for potential future gains, with price targets potentially reaching $150 if current momentum continues. This sentiment is further reinforced by AVAX's strong performance amid broader market volatility.

FAQ

Is AVAX a good crypto?

AVAX is a promising crypto with strong growth potential. Its scalable blockchain and increasing adoption make it an attractive investment option in 2025.

Can AVAX reach $100?

Yes, AVAX could potentially reach $100 by 2029 if it maintains strong growth and attracts more users and developers. Market trends are crucial.

What is AVAX coin?

AVAX is the native token of the Avalanche platform, powering transactions and distributing system rewards. It's crucial for the Avalanche ecosystem's operation.

What will AVAX be worth in 2025?

Based on current projections, AVAX is expected to trade between $17.7 and $91.1 in 2025, with $20.2 as a key support level.