In 2025, crypto derivatives trading—futures, options, and perpetual swaps—has surged, with platforms like Coinbase and Deribit driving growth. Trading volume has soared, and products have grown more sophisticated, aided by AI-driven risk tools. Leverage in derivatives amplifies volatility, as small price shifts spark big gains or losses, often triggering liquidations. Yet, hedging via derivatives can stabilize markets. The 24/7 trading cycle and speculation keep volatility high, but maturing markets and tighter regulations may improve pricing efficiency and temper swings. Overall, derivatives boost liquidity and depth, balancing heightened volatility with emerging stability.