Altcoin Derivatives Activity Thins: Open Interest Drops To Cycle Lows

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Data shows the Altcoin futures market has seen a decline in speculative engagement recently as the Open Interest has plummeted.

Altcoin Open Interest Is Now Near Cycle Lows

In its latest weekly report, on-chain analytics firm Glassnode has talked about the broad cooldown in speculation that altcoins have witnessed recently. The metric of relevance here is the “Open Interest,” which measures the total amount of positions related to a given asset that are currently open on all derivatives exchanges.

When the value of this metric rises, it means speculative activity around the cryptocurrency is going up. Generally, a higher amount of leverage raises the chances of the market turning volatile, so this kind of trend can lead to sharper price action.

On the other hand, the indicator witnessing a decline implies positions related to the asset are going down, either due to investors reducing their appetite for risk, or exchanges enforcing forceful liquidations. Such a trend may be followed by a calmer market.

Now, here is the heatmap shared by Glassnode that shows how the percentage change in the Open Interest (30-day rolling mean) has fluctuated across Bitcoin and the various altcoins over the past year:

Looks like the percentage change in the metric has been negative across the market | Source: Glassnode's The Week Onchain - Week 45, 2025

As displayed in the above graph, the change in the Open Interest has been at notable negative values in the cryptocurrency sector since mid-October, indicating that there has been a decline in speculative positioning.

Bitcoin has still managed to maintain a relatively stable trend, but interest in altcoins has plummeted as the Open Interest is now near cycle lows. “This pattern underscores a defensive stance among traders, prioritizing capital preservation over speculation,” noted the analytics firm.

The Open Interest isn’t the only metric that implies a cooldown in speculative activity; another heatmap from the report points to the same.

How the Funding Rate has changed across the market over the last couple of years | Source: Glassnode's The Week Onchain - Week 45, 2025

This heatmap shows the percentage change in the Funding Rate for Bitcoin and the altcoins. The Funding Rate refers to the periodic fee that derivatives market traders are exchanging between each other.

From the chart, it’s visible that this metric has been witnessing a cooldown since mid-year, a sign that investors have been cautious about betting on a particular direction. “Overall, derivatives sentiment remains cautious, and liquidity continues to thin across the board,” explained Glassnode.

The fact that the altcoin market has witnessed a sharp decline in Open Interest while Bitcoin has managed to hold on implies investor attention has shifted to the less risky number one digital asset.

Ethereum Price

Ethereum, the largest among the altcoins, has taken to consolidation recently as its price is still trading around $3,500.

The price of the coin hasn't made much recovery since the crash | Source: ETHUSDT on TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.