Amberdata 2025: Q1 Exchanges & Derivatives Market Intelligence Report

Q1 2025 was marked by extreme market turbulence, record-setting security breaches, and historic regulatory developments that reshaped the global crypto trading landscape. Amberdata’s in-depth analysis explores how these factors influenced spot and derivatives markets, institutional flows, and leveraged positioning across major exchanges.

Introduction

Welcome to Amberdata’s Q1 2025 Exchanges and Derivatives Market Intelligence Report—a quarter distinguished by unprecedented volatility, transformative regulatory shifts, and substantial institutional participation across crypto trading platforms. Early 2025 saw market sentiment rapidly pivot due to major security breaches at exchanges such as Bybit, heightened geopolitical uncertainties, and significant regulatory developments, including landmark SEC approvals and enforcement actions, which collectively drove substantial fluctuations in trading volumes, futures positioning, and derivatives market behaviors.

At Amberdata, our mission is to deliver comprehensive insights into these complex dynamics by analyzing detailed metrics like spot trading activity, derivatives funding rates, open interest movements, and long-short positioning ratios. By integrating extensive on-chain and off-chain data, we empower institutions, traders, and analysts to interpret how exchange-specific events, market liquidity, and leveraged positioning influence broader crypto market volatility and sentiment. Whether tracking the impacts of major liquidations, interpreting signals from exchange order books, or evaluating institutional flows in derivatives markets, Amberdata’s robust analytics provide the essential precision required to strategically navigate this volatile landscape with confidence.

The Importance of Comprehensive Data

Comprehensive, real-time data is essential for effectively navigating the crypto market, particularly given its volatility and rapid evolution. Insights into Bitcoin and Ethereum metrics, such as UTXO age distributions, holder accumulation patterns, and open interest trends, help investors and traders accurately assess market sentiment and underlying network strength. Additionally, stablecoin activity—including issuance trends, transaction volumes, and velocity metrics—can provide early signals about liquidity shifts and investor risk appetite.

Exchange-specific data, such as spot and derivatives volumes, funding rates, and long-short ratios, further enrich this analytical framework, offering crucial visibility into market positioning and potential leverage risks. Amberdata equips institutions and traders with these critical insights, enabling precise risk management and informed investment decisions. For more detailed research and analysis, visit our research blog. To explore how Amberdata can support your market strategies, contact us or request a demo.

Exchanges and Derivatives

Exchanges experienced heightened volatility in Q1 2025, with spot trading volumes sharply declining after peaking during early February’s market turmoil. Binance’s daily trading volume peaked near $68.1 billion on February 3 but fell significantly to around $16.7 billion by March 31, indicating diminished speculative activity amid persistent market worries. Derivatives-focused Bybit reached daily volumes of approximately $24.3 billion before its severe $1.5 billion security breach, which dramatically reduced investor confidence. Futures and perpetual contract volumes surged notably, with Bitcoin daily volumes briefly surpassing $81 billion and Ethereum around $36 billion during February’s volatility spikes, highlighting intense leveraged positioning. Ethereum perpetual contracts on OKX saw extreme negative funding rates, reaching -0.0355%, indicating heightened bearish sentiment. Long-short ratios indicated extreme bullish positioning on Binance’s SOL contracts (peaking at 6.03), reflecting subsequent deleveraging risks. Overall, open interest peaked significantly on institutional platforms such as CME (~$23.8 billion), underscoring deep institutional engagement amid volatile market conditions.

News and Events

From January to mid-April 2025, the cryptocurrency market experienced significant volatility and notable events, profoundly affecting exchanges and derivatives markets globally. Centralized exchanges (CEXs), decentralized exchanges (DEXs), and derivatives platforms encountered regulatory shifts, major security breaches, and strategic acquisitions, reshaping the market landscape.

In late January, Phemex Exchange suffered a severe security breach where hackers stole between $70 to $85 million from hot wallets. The incident, suspected to be orchestrated by North Korea’s Lazarus Group, prompted Phemex to halt withdrawals temporarily and triggered broader concerns around hot wallet vulnerabilities across exchanges.

Regulatory developments during this period significantly influenced exchanges. On January 30, the U.S. Securities and Exchange Commission (SEC) approved Bitwise’s combined Bitcoin and Ethereum ETF. This landmark decision enhanced institutional participation, increasing trading volumes and interest in crypto derivatives. Shortly thereafter, on February 3, a historic market crash triggered by geopolitical uncertainties caused widespread liquidations totaling $2.2 billion within 24 hours. Bitcoin and Ethereum futures experienced liquidations of approximately $409 million and $600 million respectively, highlighting derivative markets' sensitivity to macroeconomic and policy developments.

The regulatory environment continued to evolve, notably benefiting decentralized exchanges. On February 19, the SEC dropped its appeal against a court ruling overturning the controversial "Dealer Rule," which had threatened DeFi liquidity providers and decentralized market makers. This decision removed significant regulatory uncertainty, bolstering confidence in decentralized financial infrastructure.

Coinbase, a leading centralized exchange, saw a pivotal regulatory win on February 21 when the SEC officially dismissed its lawsuit alleging operation of an unregistered securities exchange. The dismissal signaled a more lenient regulatory approach under the new U.S. administration, positively impacting Coinbase’s market position.

However, February also brought unprecedented challenges. Bybit, a prominent derivatives-focused exchange, suffered the largest crypto hack in history, losing approximately $1.5 billion, primarily in Ethereum. This catastrophic event, attributed to sophisticated North Korean hackers, significantly impacted investor confidence and accelerated demands for enhanced exchange security standards industry-wide.

Regulatory scrutiny intensified further on February 24 when OKX exchange pleaded guilty in the United States to violating anti-money laundering laws, resulting in a $505 million fine. This case emphasized regulators' increasing vigilance towards offshore exchanges serving U.S. clientele, prompting exchanges globally to reassess compliance measures.

In late February, the SEC clarified its stance on "meme coins," stating that tokens without traditional securities characteristics, such as Dogecoin and Shiba Inu, would no longer be classified as securities. This regulatory relief was beneficial for exchanges listing these tokens, driving increased trading volumes and engagement from retail investors.

Strategic moves in March included Kraken’s acquisition of NinjaTrader, a regulated U.S. futures brokerage, for $1.5 billion. This significant merger bridged traditional financial derivatives with cryptocurrency trading, enhancing Kraken’s competitive positioning in regulated derivatives markets.

On March 28, the U.S. Federal Deposit Insurance Corporation (FDIC) significantly eased its previous restrictive stance, allowing banks to freely engage with cryptocurrency services without prior regulatory approval. This regulatory pivot facilitated greater partnerships between banks and crypto exchanges, improving fiat on-ramp accessibility and custody services.

Despite these advancements, Q1 2025 marked the worst quarter ever recorded for crypto hacks, with losses totaling approximately $1.63 billion, primarily due to the massive Bybit breach. This underscored ongoing vulnerabilities and intensified industry-wide efforts towards enhanced security practices and decentralized custody solutions.

Finally, operational challenges surfaced again on April 15, when AWS infrastructure failures briefly disrupted Binance and KuCoin operations, highlighting continued dependencies on centralized infrastructure providers and prompting renewed discussions on operational resilience and redundancy in crypto markets.

Spot Exchange Daily Traded Volume

Stablecoin trading volumes across major cryptocurrency exchanges have exhibited a clear downward trend from January through April 2025, signaling evolving market sentiment and potentially shifting trading behaviors. For instance, Binance, the market leader by trading volume, recorded peak daily volumes around $68.1 billion on February 3, before declining significantly in March and early April, often averaging between $10-30 billion per day. Specifically, Binance's volume dropped to approximately $16.7 billion on March 31, notably lower than January’s peak of around $20.3 billion on January 31.

Similarly, Coinbase followed a comparable trajectory, with a high of $14.4 billion on February 3, gradually declining to around $5.5 billion on March 10 and further down to $2.5 billion by April 16, underscoring a considerable reduction in U.S. market trading activity. Smaller U.S. oriented platforms like Binance.US saw volumes drop sharply from $28.6 million on February 2 to around $7.1 million by March 31 and $4.6 million by April 16, suggesting a pullback particularly among smaller retail investors amid regulatory uncertainties.

In derivatives-heavy exchanges like Bybit, daily trading reached $24.3 billion on February 3, indicative of speculative activity during high-volatility periods, but volumes halved to roughly $4.9 billion by March 3 and stabilized further around $2-3 billion in early April. Similarly, OKX and HTX (Huobi)—exchanges traditionally popular with Asian retail traders—also experienced declines, with OKX’s volume dropping from $13.7 billion on February 3 to $2.2 billion by March 31, and modestly recovering to $3.4 billion by April 13.

Exchanges favored by institutional traders, such as Bitfinex and Kraken, reflected similar patterns. Bitfinex, after seeing volumes of $1.4 billion on February 3, fell dramatically to $199 million by March 31, and then stabilized around $146 million by April 16. Kraken, from a high of $4.3 billion on February 3, also declined notably to about $1.08 billion by March 31 and only partially recovered to $1.13 billion by April 16.

This widespread decline in trading activity from January and February to March and April 2025 reflects reduced speculative interest, regulatory caution, and possibly lower volatility, prompting traders—especially retail—to adopt a cautious stance, focusing less on active trading and more on longer-term holding strategies. Institutions may also have been reassessing exposure, awaiting clearer market signals or regulatory guidance.

Exchange Top 10 Traded Tokens vs USD

Trading volumes of crypto assets versus USD on exchanges have notably declined from their early 2025 peaks, indicating shifts in market dynamics and trader behavior. Bitcoin (BTC/USD) trading dominated early activity, reaching $5 billion on February 3, before sharply declining to around $1.9 billion by March 31, then partially recovering to about $3.4 billion in early April. Ethereum (ETH/USD) mirrored this pattern, peaking at $3 billion on February 3 and falling significantly to $881 million by March 31, followed by a moderate improvement to roughly $1.2 billion by early April.

Mid-sized altcoins, including XRP/USD and SOL/USD, saw similar volatility-driven volume spikes in February—XRP/USD volumes surged dramatically to $3.5 billion on February 3—but later fell sharply, stabilizing below $1 billion per day through March and April. Solana (SOL/USD) displayed resilience, maintaining steadier volumes, peaking around $1 billion in early February and stabilizing near $400 million by early April.

Smaller market-cap assets like Dogecoin (DOGE/USD) and Cardano (ADA/USD) experienced more drastic declines, underscoring reduced retail engagement. DOGE/USD volumes fell from highs near $590 million in early February to approximately $68 million by late March, remaining muted thereafter. ADA/USD notably surged in March—peaking anomalously at $631 million on March 2—possibly reflecting short-lived speculative activity, before quickly falling back below $100 million per day by mid-April.

These shifts suggest traders and institutions have grown more cautious amid persistent market uncertainty, regulatory developments, and reduced volatility compared to the highs of early 2025. Lower BTC and ETH volumes imply institutional players are waiting for clearer signals, while diminishing interest in smaller altcoins highlights a shift away from speculative risk-taking. Traders should anticipate ongoing caution, potentially favoring stablecoin-paired trading or awaiting renewed volatility as an entry trigger, while institutions might remain sidelined, awaiting regulatory clarity or stronger market catalysts.

Futures and Perpetual Volume by Exchange for Major Assets

Futures and perpetual volumes experienced significant fluctuations in the first quarter of 2025, echoing prior patterns observed in previous periods. March was particularly notable, with multiple days showcasing substantial volume surges across major exchanges. Early in the month, specifically around March 7, Binance recorded approximately $87.2 billion in daily volume, complemented by significant activity on OKEx ($40.3 billion), Bybit ($35.3 billion), and Bitget ($35.5 billion). Kraken and Deribit also demonstrated notable upticks, reaching around $1.7 billion and $2.5 billion respectively, underscoring strong directional trading activity and heightened market participation.

However, volatility remained pronounced, with sharp day-to-day declines following these peaks. For example, on March 8, Binance volumes sharply corrected to around $24.3 billion, with other major platforms such as OKEx and Bybit similarly falling to $11.9 billion and $8.5 billion, respectively. This stark fluctuation indicates traders’ cautious sentiment and quick adjustment in leverage positions amid changing market conditions.

Mid-March volumes presented another considerable uptick, with March 10 and March 11 reflecting sustained activity—Binance approached nearly $80 billion again, supported by substantial volumes from OKEx and Bybit, each exceeding $30 billion. These spikes represent periods of intensified leverage, significant capital inflows, and robust market liquidity.

Toward the latter half of March, activity generally moderated, yet occasional significant inflows persisted. On March 28, Deribit saw increased activity, reaching approximately $1.8 billion, accompanied by Binance volumes rebounding to roughly $46.6 billion. This episodic resurgence points to persistent investor appetite, particularly when specific crypto or macroeconomic events align to drive trader interest.

Overall, Q1 2025 exhibited clear episodes of leveraged inflows and active trading, primarily concentrated around Binance, OKEx, Bybit, and Bitget, which consistently dominated exchange volume. Secondary exchanges such as Kraken, Deribit, and Bitmex contributed substantially but remained comparatively smaller. This periodic surge and subsequent pullback pattern underscores the necessity for traders to adopt disciplined risk management and strategic position sizing to navigate periods of elevated volatility and rapidly changing liquidity conditions.

Futures and Perpetual Volume by Asset for Major Assets

Asset volumes in the first quarter of 2025 showcased significant volatility, reflecting diverse investor sentiment and strategic positioning across major digital assets. Bitcoin (BTC) remained dominant, peaking notably around March 7 with approximately $121.7 billion in trading volume, indicating aggressive leveraged positioning and active risk-taking by market participants. Ethereum (ETH) mirrored BTC’s trends closely but at lower absolute volumes, reaching a peak near $40.3 billion on the same date, suggesting a strong correlation between BTC and ETH trading behaviors, likely driven by macroeconomic developments and regulatory news.

The altcoin market also exhibited distinct trading patterns driven by specific catalysts. XRP, for example, reached a significant peak of approximately $14.7 billion on March 19, likely influenced by regulatory clarity or significant project developments prompting concentrated buying interest. Solana (SOL) displayed particularly volatile yet sustained interest, frequently surpassing $10 billion in daily volumes, culminating in a notable $19.8 billion peak on April 7. SOL’s persistent high volumes highlight its importance within decentralized finance (DeFi) and NFT sectors, attracting both speculative and institutional capital.

Trading activity in Dogecoin (DOGE) and Cardano (ADA) was characterized by consistent multi-billion-dollar volumes, suggesting steady investor engagement and periodic inflows aligned with broader market sentiment shifts. Notably, DOGE volumes peaked around $7 billion on April 7, aligning with SOL's surge, likely reflecting broader retail-driven market dynamics or meme-asset speculation cycles. Smaller, strategically significant assets like TON and OP demonstrated intermittent but sharp volume increases, indicative of opportunistic trading strategies or specific ecosystem developments attracting targeted investor interest.

Secondary market assets, including Litecoin (LTC), Avalanche (AVAX), and Chainlink (LINK), experienced periodic trading volume spikes, often correlating with targeted ecosystem updates or positive news catalysts. These selective surges underline traders' sensitivity to project-specific advancements rather than broader market moves alone. Overall, the Q1 2025 asset volume patterns underline the necessity for traders and institutional investors to closely monitor macroeconomic indicators, regulatory developments, and project-specific news to strategically navigate this high-volatility environment and manage risk effectively.

Open Interest by Exchange

In Q1 2025, the distribution of open interest (OI) across cryptocurrency exchanges provided valuable insights into evolving market structure and trader behavior. Binance remained the predominant venue for retail and broader market participants, reaching a substantial peak of approximately $15.1 billion on January 19, driven by heightened bullish sentiment. CME, representing institutional interest, similarly peaked around $23.8 billion in late January, underscoring significant institutional participation during Bitcoin's ascent to nearly $105,000.

Bybit, favored by more aggressive retail traders, initially tracked Binance's growth trajectory, achieving an OI high of approximately $11.6 billion by mid-January, before sharply contracting to below $8 billion by early February amid the severe price correction. This pronounced decline highlights the susceptibility of retail-heavy platforms to sudden deleveraging events.

Bitmex and Deribit, both historically influential platforms catering respectively to perpetual contracts and crypto-options, displayed consistent but comparatively moderate OI levels. Bitmex maintained stable OI in the range of $320-$350 million through January and February, reflecting a niche yet persistent trader base. Deribit’s OI trended similarly, peaking around $1.7 billion in late January, indicative of sustained options market engagement, before declining slightly as volatility receded.

Huobi and OKEx presented parallel trends, with OI peaking at roughly $2.7 billion and $4.8 billion respectively in late January, signifying active trader participation primarily from the Asian markets. Both exchanges subsequently experienced moderated activity amid February's market downturn, reflecting region-specific shifts in risk tolerance.

Kraken recorded relatively modest open interest, maintaining stability around $300 million in January before declining below $200 million in February, suggesting cautious, predominantly spot-oriented trading behaviors rather than aggressive futures speculation.

Overall, the differentiated trajectories of these exchanges highlight the importance, for institutional desks and sophisticated traders, of monitoring OI distribution to identify liquidity shifts, market sentiment, and risk concentrations across global crypto markets.

Open Interest by Asset

In Q1 2025, major cryptocurrencies experienced significant price fluctuations accompanied by notable shifts in Open Interest (OI), providing insight into evolving investor sentiment and speculative behavior.

Bitcoin (BTC) entered Q1 around $101,470 but underwent a substantial correction, declining steadily to roughly $76,330 by early April. This significant decrease was mirrored in the Open Interest, which fell markedly from a January peak of approximately $35.66 billion to about $22.61 billion by mid-April. The correlation between price and OI decline highlights reduced market leverage and cautious investor sentiment amid volatility. However, BTC prices rebounded toward the end of April to approximately $93,580, accompanied by an OI recovery to $24.94 billion, suggesting renewed but cautious speculative interest.

Ethereum (ETH) similarly faced downward price pressure, commencing Q1 near $3,300 before sharply declining to approximately $1,470 by early April. Correspondingly, ETH's OI contracted significantly, decreasing from around $11.66 billion in January to about $5.22 billion by mid-April. This notable drop underscores heightened caution among traders amid ETH’s dramatic price swings. A slight recovery was observed by the end of April as ETH prices increased to approximately $1,760, with OI slightly recovering to $5.93 billion, indicating cautious re-entry by market participants.

Solana (SOL) saw pronounced volatility, with prices sharply declining from roughly $256 at the start of the year to about $106 in early April, reflecting weaker market sentiment. OI for SOL dropped from around $2.86 billion in January to $1.20 billion by early April, signaling reduced speculative positioning. A modest recovery in late April to approximately $149 coincided with a rebound in OI to $1.54 billion, indicating cautious optimism returning to SOL markets.

XRP's price volatility was notable, beginning Q1 around $3.10, falling sharply to about $1.80 in early April, before stabilizing around $2.20 by the month's end. XRP’s OI mirrored this volatility, decreasing dramatically from a high of $2.35 billion in January to approximately $0.98 billion mid-April, later showing signs of cautious re-engagement at around $1.12 billion.

Other notable assets, such as DOGE and LTC, also experienced substantial shifts in OI. DOGE's OI peaked significantly in December at approximately $3.29 billion but sharply declined to around $0.61 billion by late April, reflecting a marked decrease in speculative interest alongside price declines. Litecoin (LTC), conversely, saw OI fluctuations that mirrored its volatile pricing, peaking at around $0.41 billion in early December before contracting to approximately $0.19 billion by April. These trends indicate broader market caution and highlight ongoing investor sensitivity to market volatility.

Overall, while April's moderate OI recovery across BTC, ETH, SOL, XRP, and other major assets indicates renewed but tentative speculative interest, significantly lower levels compared to early 2025 suggest ongoing investor caution in an uncertain market environment.

BTC Realized Funding Rates

In Q1 2025, Bitcoin (BTC) funding rates displayed notable volatility and divergence across exchanges, signaling fluctuating market sentiment amid BTC's price swings between ~$74K and ~$99.5K. Funding rates are periodic payments exchanged between traders in perpetual futures contracts, designed to maintain alignment between perpetual contract prices and underlying spot prices. Positive funding indicates bullish sentiment, with longs paying shorts, whereas negative funding suggests bearish sentiment, with shorts paying longs.

The quarter started with relatively stable, moderately positive funding rates averaging around 0.01% daily, indicating bullish momentum as BTC neared its all-time highs. Notably, Deribit's BTC-USDC perpetual contracts saw occasional spikes, reaching as high as 0.0341% on January 20, aligning with BTC's approach to resistance around $98K.

February's sharp price correction to a low of $78,248 triggered considerable disruption in funding rates, notably driving negative rates on multiple exchanges. Bybit's BTCUSDT and Binance's BTCUSDC contracts briefly dipped into negative territory around -0.0177% and -0.0041%, respectively, reflecting bearish sentiment and aggressive short positions. Interestingly, on February 22, Bybit BTCUSDT experienced an exceptionally high funding spike of 0.0514%, marking a sharp reversal as shorts faced liquidation amid BTC's rebound.

March was characterized by lower volatility in funding, mirroring BTC's consolidation phase. Rates hovered mostly near neutral, reflecting cautious investor sentiment. However, April's renewed bullishness saw consistent positive funding rates returning, stabilizing around 0.005%–0.01%, reinforcing optimism as BTC surged back toward $94.5K. These shifts in funding dynamics, ranging from -0.0177% to highs of 0.0514%, underscore traders' shifting risk tolerance and highlight critical turning points for BTC price action.

ETH Realized Funding Rates

In Q1 2025, Ethereum (ETH) exhibited pronounced volatility in funding rates, reflecting heightened trader sensitivity and shifting market dynamics amid sharp price movements. Funding rates, representing periodic payments between traders in perpetual futures contracts to maintain alignment with underlying spot prices, provided crucial signals for market sentiment. January opened strongly bullish, with funding consistently positive around 0.01% daily, occasionally surging significantly higher—Deribit's ETH-USDC perpetual contracts reached a notable peak of 0.0297% on January 20.

However, February’s downturn was severe, driven by macroeconomic uncertainty and increased regulatory pressures on staking, causing ETH funding rates to collapse into deep negative territory. Most dramatically, OKEX’s ETH-USDC contracts plunged to lows of -0.0355% on February 4, underscoring extreme bearishness and heavy short positioning. March saw ETH stabilize, with funding oscillating near neutrality (-0.005% to 0.005%), reflecting cautious consolidation as Ethereum held critical support around $1,600.

April’s modest recovery saw funding rates return gently positive, averaging 0.003%–0.01%, signaling cautious optimism as ETH approached resistance near $1,800. Overall, ETH’s extreme funding range from -0.0355% to 0.0297% in Q1 highlights intense trader uncertainty and sensitivity, significantly outpacing Bitcoin’s volatility during the same period.

SOL Realized Funding Rates

Solana’s funding rate behavior in Q1 2025 provides key insight into trader positioning and sentiment amid high-beta volatility. Early January opened with stable, mildly positive rates across most venues (e.g., Binance, Bybit, and OKX all near +0.01%), consistent with SOL’s rally from ~$100 to $150+. However, the late-January to February drawdown—where SOL dropped ~30% from its ~$190 peak to ~$130—was accompanied by increasingly negative funding rates, indicating rising short pressure and forced unwind risk.

On February 4, Binance SOLUSDC plunged to -5.98%, Bybit SOLPERP hit -3.74%, and OKX SOL-USDT registered an extreme -13.04%—marking a capitulation phase as traders aggressively shorted amid declining price action. Deribit and Huobi followed suit with persistently negative rates through mid-February, reinforcing the bearish shift.

March was marked by whipsaw positioning and mixed funding signals. As SOL tested ~$100 support, funding rates remained volatile. OKX saw prints below -2.5% around March 30–31, coinciding with a local price bottom. While short interest remained elevated, negative rates began to moderate as price stabilized.

April, however, brought a clear shift. Funding turned decisively positive after April 5, with Deribit and OKX peaking above +1.5% mid-month. As SOL surged back through $150, funding confirmed that long positioning was once again dominant.

The trend in rates mirrors SOL’s broader technical trajectory: high-leverage shorts in February, stabilization in March, and bullish conviction returning in April.

XRP Realized Funding Rates

XRP’s funding rates in Q1 2025 traced a complex path, echoing the asset’s turbulent yet bullish trajectory. In January, consistent positive funding across Binance, Bybit, and OKX (e.g., +0.01% across the board) reflected optimistic positioning as XRP rallied to $2.30. Deribit and OKX even recorded bursts above +2%, signaling leveraged long interest as XRP tested multi-year highs.

February saw sentiment diverge. While XRP remained one of the better performers among majors, its sharp drop from ~$2.30 to ~$1.80 triggered funding rate volatility. On February 20, Binance XRPUSDC plunged to -1.72%, while Deribit fell to -1.53%, reflecting reactive short positioning. However, notable resilience was seen—Bybit XRPPERP and Huobi maintained steady funding near +0.01%, suggesting dip buyers remained active.

March was more dynamic. As XRP dipped to ~$1.60 and then rebounded sharply to retest $2.30, funding rates fluctuated. OKX and Deribit consistently printed below zero mid-month, with March 30 showing Deribit at -4.6% and OKX at -3.8%. This period likely marked peak fear and shorting—a contrarian signal ahead of XRP’s sharp recovery.

By April, sentiment turned constructive. Deribit, Bybit, and Binance funding flipped positive after April 5. OKX posted a standout +2.0% on April 5–6, coinciding with XRP’s move back toward $2.25. Funding data confirms traders are rotating back into long exposure, positioning for a breakout above $2.35.

Long-Short Ratios on Binance

Binance’s long/short ratios for Q1 2025 offer key signals on leveraged sentiment, revealing a shifting risk appetite across BTC, ETH, SOL, and XRP.

BTC remained relatively balanced throughout Q1, with its ratio oscillating between 1.0 and 2.9. Notably, spikes above 2.5 in late February (2.94 on Feb 26) and mid-March (2.92 on Mar 11) suggest moments of excessive bullish crowding—often followed by retracements. More recently, BTC’s ratio has dropped sharply to 0.60 by April 23, indicating a tilt toward shorts or rising hedging demand. This setup could signal squeeze potential if price stabilizes above key support.

ETH displayed persistent long-heavy bias, frequently ranging between 3.5 and 5.5. Peaks like 5.51 (Mar 4) and 5.09 (Mar 11) reflect strong dip-buying conviction, possibly driven by optimism around ETH infrastructure or ETF catalysts. However, the drop to 1.73 on Apr 23 hints at profit-taking or fading confidence—warranting caution from overly bullish traders.

SOL showed the most extreme bullish sentiment. Ratios consistently exceeded 4.0 during February and March, hitting a cycle high of 6.03 on Mar 9. This aggressive long skew may have exacerbated volatility and liquidation risk. The sharp drop to 1.35 by Apr 23 reflects sentiment normalization—potentially clearing the path for more sustainable positioning.

XRP stood out for its relative stability. Ratios hovered between 2.0 and 3.3, suggesting steady long interest without the extremes seen in SOL. This resilience, alongside improving price action, may reflect growing institutional involvement or speculative confidence in regulatory clarity.

Overall, traders should monitor ratio spikes and dips as tactical signals—whether to fade exuberance, anticipate squeezes, or align with trend strength.

Long-Short Ratios on Bybit

Bybit’s long/short ratios in Q1 2025 present a more restrained sentiment landscape compared to Binance, offering key insights into trader positioning across BTC, ETH, SOL, and XRP.

BTC maintained a relatively neutral stance on Bybit, fluctuating between 1.05 and 1.41 through March and April. Unlike Binance, which saw peaks over 2.9 (e.g., Feb 27), Bybit’s positioning remained conservative—suggesting that Bybit traders leaned less into leverage during volatile windows. The recent decline to 1.05 on April 23 highlights growing caution, possibly signaling hedging or sideline behavior as BTC approaches key resistance levels.

ETH was also more muted on Bybit, with ratios holding steady between 1.4 and 1.56. This is in stark contrast to Binance’s more aggressive 4.0–5.5 range seen through much of March. The tighter band at Bybit implies less speculative froth and suggests that traders there were more measured in chasing upside, which could reduce liquidation risk in pullbacks.

SOL presented an interesting case: while Binance saw extreme ratios above 6.0 in March, Bybit SOLUSDT remained near 1.4–1.5 throughout the quarter. This more tempered optimism may reflect risk-aware behavior or simply lower altcoin leverage utilization on Bybit.

XRP remained consistent on both platforms but slightly lower on Bybit (1.3–1.5 range vs. Binance’s 2.0–3.3). This consistency, without crowding, aligns with XRP’s solid price structure and likely reflects institutional-style flow.

In summary, Binance traders showed more aggressive long bias, especially in ETH and SOL, while Bybit positioning appeared more balanced and cautious. For savvy market participants, these discrepancies can inform cross-exchange strategies, helping identify where sentiment may be overextended—or where it’s just getting started.

Conclusion

Exchange dynamics were notably volatile, marked by significant shifts in spot and derivatives trading volumes due to regulatory impacts and major security breaches. Binance and Bybit notably experienced volume contractions, reflecting decreased speculative activity and heightened investor caution. However, institutional engagement through platforms like CME remained robust, emphasizing sustained deep market participation amid volatility.

If you're looking to enhance your market strategies, gain clarity through comprehensive analytics, or leverage detailed insights for informed decision-making, don't hesitate to contact us. Additionally, we invite institutional investors, brokers, and traders interested in our advanced analytical tools to book a personalized demo to experience firsthand how Amberdata can empower your crypto investment strategies and operational efficiencies.

Further Research and Insights

Explore extensive blockchain analytics and market research by Michael Marshall, Head of Research at Amberdata, on our comprehensive research blog. Michael brings deep expertise across a diverse range of critical topics, delivering detailed analyses on market volatility, decentralized finance (DeFi), and actionable trading strategies tailored for institutional and retail investors alike. Below is a selection of featured pieces, highlighting the variety of insights you can discover:

Dive into Bitcoin volatility with the foundational On-chain Metrics BTC Volatility Part 1, introducing essential indicators such as liquidity patterns, mining influence, and investor behaviors. Further deepen your understanding with  Part 2, exploring on-chain activity from miners and institutional traders during significant market events.

Examine Ethereum’s dynamic relationship with stablecoins in our  DeFi Activity Stablecoins series, beginning with an overview of their liquidity impacts and risk implications.  Part 2 provides a deeper statistical analysis, uncovering how stablecoin lending affects Ethereum’s intraday volatility, illustrating their dual roles in market stability and systemic risk.

For those interested in advanced trading strategies, our comprehensive Crypto Pairs Trading series starts by explaining cointegration and its advantages over simple correlation in Part 1. Part 2 and Part 3 offer essential statistical validations and practical trading strategy guidelines. Conclude with Part 4, reviewing empirical results and strategy performance evaluations.

Finally, understand market liquidity and volatility drivers through practical applications, like our Orderbook Analysis, which examines real-world impacts on cryptocurrency trading during major macroeconomic disruptions.

These topics represent just a snapshot of the extensive insights available. Visit our blog to uncover more data-driven research and market analyses.