Does Traders Prefer the Futures Market over the Spot Market? These Data Thinks So

Traders are increasingly favoring the futures market over the spot market. While casual investors may stick to simple buying and selling, more seasoned or speculative traders appear to be moving toward futures.

Futures are contracts that let them bet on price moves without actually holding any crypto. Why is this shift happening, and what does the data say? Let’s dive in.

Spot Trading Volume Falls to a Six-Month Low

Recent data from The Block shows that trading volume on major cryptocurrency exchanges like Binance, Coinbase, and Bitfinex has plunged to its lowest point in six months. 

As of the latest report, the seven-day moving average of exchange volume was just over $32 billion, compared to $132 billion in early December 2024. That’s a staggering 75% drop in volume.

Even decentralized exchange (DEX) volume is falling. April’s numbers are expected to be the lowest since October 2024. The trend is affecting even crypto ETFs—financial products that typically see more stable volumes. 

According to SoSoValue, spot Bitcoin ETF volume dropped to $1.55 billion, its lowest since late March. Spot Ethereum ETF volume also hit a low of $178.76 million.

Read also: Zora Airdrop: Tokenomics, Premarket Price, and What Users Should Know

The Rise of Futures Trading

While spot trading is dwindling, futures trading is telling a different story. The 30-day moving average ratio of spot BTC trading to futures BTC trading is currently sitting at 0.19. That means for every dollar traded in spot, over five are traded in futures. 

For Ethereum, the ratio is slightly higher at 0.20. These are the lowest ratios recorded in months, suggesting that more traders are entering the speculative futures market.

This shift matters. A higher spot ratio often indicates real market demand—people buying to hold or use the asset. A lower ratio suggests more speculative, short-term trading, typically involving leverage and bets on price movements.

What’s Driving This Shift?

There are a few reasons traders might be flocking to futures:

1. Leverage – Futures allow traders to control larger positions with smaller capital, potentially increasing profits (and losses).

2. Volatility – In a volatile market, futures offer a way to profit from both rising and falling prices.

3. Market Uncertainty – With recent economic and political events, including tariff announcements by former President Trump, many traders may prefer short-term speculative positions over long-term spot holdings.

Read also: BTC ETF Approved: Gearing Up for Bitcoin's New High

Solana Sees a Bright Spot

Interestingly, not all cryptos are experiencing the same drop in volume. Solana (SOL) has recently seen a slight uptick in weekly exchange volume, surpassing Ethereum (ETH) in some instances. 

Solana’s official X (Twitter) account even bragged about capturing 70% of crypto app revenue on a single day last week.

This surge could be linked to increased interest in Solana-based decentralized apps, including memecoins and gaming projects that are gaining traction in 2025.

FAQs

What is the difference between futures and spot trading in crypto?

Spot trading involves buying or selling the actual crypto asset at current prices. Futures trading involves contracts that speculate on future prices without owning the underlying asset.

Why are traders shifting from spot to futures?

Futures offer leverage, the ability to profit from both up and down markets, and more flexibility in volatile conditions. These features attract more speculative traders.

Is the drop in spot trading volume bad for crypto?

Not necessarily. While it may suggest less direct demand, it also shows that traders are using more sophisticated tools. However, it can increase volatility.

Which crypto is bucking the trend?

Solana has shown increased trading volume recently, thanks to rising app revenue and developer activity on its network.

Should beginners trade futures?

Futures trading is risky and complex. It's better suited for experienced traders who understand leverage and can manage the risks involved.