Crypto Leverage Still Down 50% Post-Crash: What It Means for P2P Traders
Traders are still gun-shy after the October liquidation event, with leverage down over 50%. This means less speculative volume, but also potentially wider spreads for smart P2P merchants.
The crypto market's appetite for leverage is still in the gutter, a full six months after that Black Friday bloodbath. Open interest has been sliced in half, proving traders haven't rushed back to high-risk bets. This isn't just a minor dip; it's a massive reset that's still playing out.
Centralized exchanges like Binance and OKX are still kingpins of derivatives, but their action has dried up. Trading volumes are down a brutal 34% this year. While they still dominate, the cracks are showing as traders get spooked.
Meanwhile, decentralized exchanges are quietly gaining ground. Their volume is up, and they're snagging a bigger slice of open interest. This shift means the game is changing, and P2P merchants need to watch where the volume is really flowing.