Gate News: The cryptocurrency market crash on October 10, 2025, led to the evaporation of $19 billion in perpetual futures leveraged assets, but this event also created development opportunities for on-chain options startups. Derive, an on-chain options platform, CEO Nick Forster stated that this market turbulence highlights that perpetual contracts are not the only financial instruments, and on-chain options have demonstrated their feasibility and profit potential for the first time.
According to data from DefiLlama, the on-chain cryptocurrency options premium trading volume reached a record high of $51 million in March this year, while Bitcoin futures trading volume declined by about 56% from its October peak. The tightening market environment has led traders to turn to options for structured returns, driving up demand for on-chain options.
Derive and emerging application Kyan are optimizing the on-chain options experience through a hybrid model that balances transparency and performance. Cozy stated that they offer portfolio margin, allowing traders to calculate collateral based on all open positions, improving capital efficiency, while integrating options and futures trading on a single platform to reduce operational complexity.
The increased acceptance of crypto assets by traditional financial institutions is also a driving factor. Since the approval of the first US Bitcoin ETFs in 2024, institutional investors have entered the market, and options trading as a risk hedging tool has gained more attention. Derive’s partnership with FalconX further enhances its market-making capabilities and is expected to gradually eat into the market share of large options platforms like Deribit.
Although perpetual futures remain the preferred choice for retail speculation, on-chain options attract more investors with their transparency, security, and structured advantages. Industry insiders believe that the growth of this emerging market marks the diversification of crypto financial products and provides new yield tools and risk management methods for mainstream assets like Bitcoin and Ethereum.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Former UK PM Liz Truss Publicly Endorses Bitcoin as Tool Against Currency Debasement
Former UK Prime Minister Liz Truss criticized Britain's economic trajectory, citing high taxes and regulations. She advocates for Bitcoin to combat currency debasement and is organizing a conference to promote a movement for sovereignty and freedom.
GateNews2h ago
BTC breaks below 76000 USDT
Gate News bot message, Gate market data shows that BTC has broken below 76000 USDT, current price is 75996.9 USDT.
CryptoRadar3h ago
Goldman Sachs Files Bitcoin Income ETF Using Options Strategy
Goldman Sachs proposed a Bitcoin-focused income ETF that avoids direct Bitcoin holdings, using linked ETFs and options strategies for income. This filing reflects increased competition in the crypto investment space among major firms.
CryptoFrontNews4h ago
Bitcoin ETFs Record $663.9M Inflows, Strongest Day Since Mid-January
Bitcoin ETFs saw $663.9 million in inflows on April 18, indicating renewed institutional confidence and a shift in market sentiment. This trend suggests sustained interest in Bitcoin as investors seek to diversify their portfolios.
GateNews5h ago
Bitcoin Ownership Surpasses Gold Among Americans for the First Time
More Americans now own Bitcoin than gold, highlighting a significant shift in asset preferences as Bitcoin's popularity surges. U.S. entities dominate global Bitcoin holdings, and institutional adoption is accelerating, with major firms entering the market and legislation potentially enhancing Bitcoin's legal status.
GateNews5h ago
Bitcoin Price Outlook Shifts as Iran Toll Demand Revives $1M Target Talk
Iran Bitcoin toll revives debate on crypto as global payment infrastructure
Geopolitical tensions push Bitcoin beyond store-of-value into currency role
Institutional adoption and flows strengthen long-term million-dollar Bitcoin narratives
Bitcoin price outlook has shifted again after fr
CryptoNewsLand6h ago
