Crypto derivatives volumes slump as U.S. perp market opportunity emerges

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Crypto derivatives volumes slump

Highlights

Total crypto futures volume on major exchanges fell to $2.9 trillion in May, the lowest monthly level in a year and sharply below 2023 peaks.
Trading activity is increasingly concentrated on top venues like Binance, OKX, Bybit, and Gate, while smaller exchanges see the sharpest declines amid low liquidity.
The CFTC's new acceptance of crypto perpetual futures in the U.S. creates potential for onshore institutional participation, compliance improvements, and competitive liquidity versus offshore markets.

Futures slowdown and market concentration

The Block reports that total futures volume across major crypto exchanges reaches about $2.9 trillion in May, the weakest monthly level in a year and far below the $6 trillion to $7 trillion peaks seen during more active periods last year. Spot trading volumes and onchain activity also remain muted, pointing to a broader retreat in risk appetite across digital asset markets.

Trading activity stays concentrated on a small group of venues, with Binance holding the largest share, followed by OKX, Bybit and Gate. Smaller exchanges record the sharpest declines as traders shift toward platforms with deeper liquidity during quieter market conditions.

U.S. regulatory opening reshapes perp outlook

At the same time, the CFTC formally opens the door to crypto perpetual futures contracts in the U.S., marking a notable regulatory shift for a product that has largely operated outside domestic oversight. Perpetual futures have no expiry date, which removes rollover costs and calendar risk, while funding payments between long and short positions help keep prices aligned with the spot market.

The significance of the U.S. move lies less in basic access, because many U.S.-based traders already use offshore exchanges via VPNs, and more in what a regulated domestic market could support through institutional participation, stronger compliance structures and onshore liquidity. The key question remains whether U.S. venues can match the pricing and liquidity conditions that offshore competitors currently offer, and whether that is enough to drive a recovery in derivatives volumes.

Our earlier coverage of the CFTC’s approval of bitcoin perpetual futures on Kalshi explained how the decision triggered a selloff in major U.S. exchange operators as investors reassessed competitive dynamics. The article highlighted concerns that regulated “perps” could expand beyond bitcoin into other asset classes, potentially challenging incumbent venues and reshaping where liquidity concentrates.

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