BitMEX, one of the safest exchanges, today released its end-of-year research report, “State of Crypto Perpetual Swaps 2025,” outlining five core insights that defined a turbulent year for the global crypto derivatives market. The report examines how structural stress, liquidity shocks and the breakdown of once-reliable trading strategies reshaped perpetual swaps in 2025.

According to the report, the most significant event of the year was the Oct. 10 to 11 market crash, which triggered an estimated $20 billion liquidation cascade. BitMEX analysis shows that auto-deleveraging mechanisms across multiple exchanges disrupted delta-neutral strategies, forcing professional market makers to reduce liquidity and leaving order books at their thinnest levels since 2022.

“2025 marked a turning point where market structure mattered more than market direction,” said Stephan Lutz, CEO of BitMEX. “The events of October showed that even sophisticated, historically neutral strategies can fail when exchange risk engines are stressed, and that resilience now depends on transparent systems and disciplined risk management.”

The report also finds that funding rate arbitrage, once considered a reliable source of passive yield, became increasingly crowded. As exchange-native delta-neutral products expanded, funding rates compressed sharply, with yields falling toward 4 percent and often below prevailing U.S. Treasury rates by mid-year.

Beyond market mechanics, the report highlights a growing trust divide between fair matching exchanges and so-called B-Book platforms. BitMEX researchers observed multiple incidents in which profitable traders faced trade reversals or account restrictions under “abnormal trading” clauses, reinforcing the importance of understanding counterparty risk.

“Where traders choose to execute has become as important as the strategy itself,” Lutz said. “As derivatives markets mature, participants are demanding venues that prioritize fair matching, clear rules and accountability, particularly during periods of market stress.”

The report also examines the rise of perpetual decentralized exchanges, noting increased innovation alongside new vulnerabilities such as targeted liquidation attacks and oracle manipulation. At the same time, BitMEX identifies emerging product categories, including equity perpetuals and funding rate trading, as signs of continued evolution in the derivatives landscape. Earlier this week, it launched Equity Perps, giving traders 24/7 access to 10 US stocks and indices.

Looking ahead, BitMEX concludes that the era of easy yield has ended, but that innovation in product design and market structure is accelerating. The firm expects continued convergence between crypto and traditional markets, with derivatives increasingly used to access global assets on a 24/7 basis.

The full “State of Crypto Perpetual Swaps 2025” report is available on the BitMEX blog.

BitMEX is the OG crypto derivatives exchange, providing professional crypto traders with a platform that caters to their needs with low latency, deep crypto native and especially BTC liquidity, and unmatched reliability.

Since its founding, no cryptocurrency has been lost through intrusion or hacking, allowing BitMEX users to trade with confidence that their funds are secure and that they have access to the products and tools required to be profitable.

BitMEX was also among the first exchanges to publish on-chain Proof of Reserves and Proof of Liabilities data. The exchange continues to publish this data twice a week, providing assurance that customer funds are safely stored and segregated.

For more information, users can visit the BitMEX Blog or www.bitmex.com and follow Discord, Telegram and Twitter.

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