The crypto derivatives market faced a 15.7% decline in trading volume, highlighting risk concentration and uneven recovery patterns.
The crypto derivatives market has seen a notable decline, with trading volume reaching $35.08 trillion in the first half of 2026, a 15.7% drop from the same period last year. Despite a recovery from an April low, indicators such as open interest, liquidations, and institutional flows suggest an uneven market rebound, according to a report by CoinGlass.
The average daily trading volume was $193.8 billion, down from $41.60 trillion in the first half of 2025. The report highlighted reduced trading activity, persistent high risk in open positions, and concentrated liquidation events, emphasizing a need for further data to confirm the market's recovery.
Trading Volume Trends
Trading volumes were on a downward trend until April, starting the year at $6.73 trillion in January and hitting a low of $5.29 trillion in April. May and June saw slight increases, but volumes remained significantly lower than January's levels, with the first quarter totaling $18.81 trillion and the second quarter at $16.27 trillion, reflecting a 13.5% quarter-to-quarter decrease.
Analysts noted that trading activity was largely event-driven, with a significant daily volume peak of $480.4 billion on February 6, contrasted by a low of $74.7 billion on April 5. The report cautioned that sporadic rebounds in volume are not indicative of a sustained recovery.
Open Interest and Liquidations
The average daily open interest for the first half of 2026 was $112.7 billion, down 10% year-on-year, with a total of $99.94 billion by June 30, marking a 17.9% decline from the year's start. CoinGlass observed a divergence between trading volumes and accumulated risk, with open interest increasing slightly even as trading volumes fell.
Liquidations reached $73.35 billion, with long positions accounting for 62.2% of this total. June saw the highest liquidation volume, predominantly from long positions, underscoring the event-driven nature of market volatility.
Market Concentration and ETF Dynamics
The top 10 exchanges dominated 81.2% of the trading volume, with Binance leading at $9.34 trillion. This concentration has heightened since January, with the top exchanges benefiting from increased trading flows.
In the U.S., Bitcoin ETFs ended the first half of 2026 with $5.46 billion in net outflows. Despite some inflows during positive trading days, outflows were substantial on negative days, indicating ongoing challenges for institutional demand. Ethereum ETFs faced similar issues, ending the period with a net outflow of $1.483 billion.
Outlook for the Second Half of 2026
CoinGlass concluded that the market has not experienced a consistent reduction in leverage, with trading volumes and risk management fluctuating. Analysts recommend monitoring whether the recovery in trading volumes can be sustained and if ETF flows will improve, as a more robust market recovery hinges on synchronized trading activity and enhanced institutional demand.
