The cryptocurrency derivatives market has grown rapidly: the volume of bitcoin futures trading has long exceeded the spot market. For example, perpetual bitcoin futures in Q1 2024 had three times the average daily volume of spot trading. Overall, in 2024, the total trading volume on the 10 largest futures exchanges reached $58.5 trillion, doubling compared to 2023. Bitcoin futures dominate the market, but traders actively use other major crypto assets as well. To determine which cryptocurrency is best for futures trading, we will analyze liquidity, volatility, funding rates, the volume of open positions, risks, and resistance to manipulation for five popular assets: BTC, ETH, BNB, SOL, and XRP.
Observing Popular Assets
BTC
BTC is the benchmark for the futures market. Approximately 45% of all cryptocurrency derivatives are in Bitcoin. Open interest in BTC consistently exceeds $40–45 billion, and liquidity is at its highest. Volatility is around 47% per annum, making the asset relatively predictable. Funding rates are often positive, especially during periods of market optimism, indicating the prevalence of long positions.
A strong institutional base (including CME, BlackRock, and Fidelity) makes the Bitcoin futures market stable and regulated. Trust is high, and manipulation is minimal due to deep liquidity and a broad participant base.
ETH
ETH is the second most noticeable asset for futures trading. The market share is about 21%, an open interest exceeds $20 billion. Ethereum demonstrates good liquidity and a funding rate comparable to BTC. At the same time, it is used to hedge altcoins and DeFi assets, which expands its role. In 2024, with the launch of a spot ETF on Ether.
Analysts expected institutional interest to grow, driving up the turnover of derivatives. Volatility is higher than BTC but more predictable than most altcoins. Regulatory uncertainty (commodity or security) can affect the market reaction to the news, but ETH remains a reliable instrument for derivatives trading.
BNB
BNB is a Binance ecosystem token. It is popular among retail traders due to its fee discounts and availability on the platform itself. Liquidity is high within Binance but limited on other platforms. In 2024, open interest in BNB futures reached an all-time high of $1.2 billion. The funding rate in a bull market often rises above average, especially with positive news from Binance.
However, BNB is sensitive to regulatory risks (including SEC lawsuits against Binance), as well as internal news: new product launches, token burns, and changes to the platform. All this makes BNB more volatile, and the risk of manipulation is moderate due to the centralization of management.
SOL
SOL is a highly volatile and growing asset that took a significant share of the futures market in 2024. Open interest reached $4 billion, especially during the launch of popular meme tokens and new dApps.
The funding rate can exceed 0.015% per day with increased demand for longs. Solana offers traders fast movements – a 20% increase in 48 hours is not uncommon. However, surges in liquidity alternate with periods of calm, and the network’s past instability remains a risk factor. SOL is of interest to aggressive speculators and experienced traders but requires active monitoring of news and leverage restrictions.
XRP
XRP is an altcoin with a strong news dependence. After the positive outcomes of Ripple’s lawsuits against the SEC in 2024, XRP has shown significant growth in volumes and OI (up to $3-4 billion). In December, its futures became the most traded altcoin on Binance. Volatility is extremely high: the price can rise by 100% in two days and then fall by 20%.
The funding rate fluctuates, and upward spikes indicate market overheating. Retail traders dominate, and institutional participation is limited. High risk of pumps/dumps requires discipline and stop orders. XRP is suitable for speculators who are ready to enter and exit quickly.
New Trends in Crypto Derivatives
As of early 2025, there is growing interest in futures on new assets and alternative contract types, including options and derivatives on DeFi tokens. Trading through decentralized platforms (DEX) remains a promising direction, especially in countries with restrictions on centralized exchanges. Binance, OKX, and Bybit continue to dominate, but regulated exchanges (such as Coinbase International) are also emerging to attract institutional investors. In addition, exchanges are increasingly implementing risk controls, leverage limits, and automated liquidations, making the market more resilient for traders.
Key Metrics Comparison Table
Below is a comparison of the cryptocurrencies under consideration based on the main parameters that are important for futures trading:
|
Metrics |
BTC |
ETH |
BNB |
SOL |
XRP |
|---|---|---|---|---|---|
|
Futures liquidity |
Highest (≈45% of OI market); average daily volume ~$57 billion |
Very high (≈21% of the market); 2nd place after BTC |
High on Binance; globally lower (OI peak ~$1.2bn) |
Moderate (≈4% of OI market); record OI ~$4 billion |
High (peak interest – most traded alt on Binance); volume up to $116 billion/month |
|
Volatility |
Average for crypto (lower than alts); ~47% per annum in 2024 |
Higher than BTC; high but predictable (correlated with the market) |
High; dependence on news on Binance (price ± tens of % per year) |
Very high; sharp jumps (±20% per day during rallies) |
Extremely high; spikes of ±100% for short periods |
|
Funding rate (trend) |
Mostly positive (longs pay ~0.01%/8h); market in contango |
Like BTC: tends to be slightly positive |
Weak positive bias; may fluctuate more in one-sided markets |
Tends to rise in a bullish trend (0.017%/8h recorded) |
Normally around 0% (demand balance); overheating spikes quickly subside |
|
Open interest (end 2024) |
Maximum – around $40–45 billion (dominant market share) |
~$20 billion (½ of BTC); steady growth along with price |
~$1–1.2B (ATH); concentrated on Binance |
~$4B (ATH in November); up significantly over the year |
~$3-4B (estimated) ; decline to 1.33B XRP ($3.3B) in Feb 2025 |
|
Risk of manipulation |
Minimal; very resistant to single player influence |
Low; liquid market, rare abnormal spikes without reasons |
Moderate; tied to Binance, vulnerable to its problems |
Elevated; less liquid, possible insider pumps |
Elevated; sensitive to crowds and news, history of pumps/dumps |
Note: OI = Open Interest; volumes are approximate, based on data for late 2024 – early 2025.
Determining the best cryptocurrency for futures trading predominantly depends on the trader’s goals and risk profile. If stability and liquidity are a priority, then Bitcoin is the clear winner – its futures market is the deepest and least volatile of all crypto assets. Bitcoin futures trading attracts the biggest players, providing relatively predictable price action with colossal volumes. In second place is Ethereum, offering a balance between high liquidity and slightly higher volatility – a good choice for those looking for a little more price movement while still having acceptable risks.
BNB and XRP are suitable for traders who are ready to take on increased risk. BNB futures are advisable if you are confident in the stability of the Binance ecosystem and want to trade an asset sensitive to exchange news. XRP provides super profits in the short term due to its volatility but requires caution – position management is critical here. Both assets demonstrate surges in volumes and prices under the influence of the news background, so they can be recommended to experienced speculators who know how to “catch the wave” and exit the position in time.
Solana (SOL) is a unique player: a relatively new player in the derivatives market that combines high volatility with growing liquidity. SOL futures may be attractive to traders who follow the DeFi sector and emerging trends – Solana has had periods of outperformance, with its futures significantly outperforming the market. However, its lower resistance to manipulation and the technical risks of the network mean that it is worth using high leverage and capital on SOL with great caution.
Conclusion
In conclusion, Bitcoin remains the base asset for futures trading due to its best combination of liquidity and reliability. Ether complements it as a second base instrument. Altcoin futures (BNB, SOL, XRP) can bring more profit due to price movement but are associated with proportionally higher risks. A skilled trader can diversify strategies by maintaining a major position in BTC/ETH while keeping a smaller, more aggressive portion in volatile altcoins. Choosing the best cryptocurrency for futures depends on your risk tolerance: conservatives will suit BTC and ETH, and those looking for increased profitability – controlled positions in BNB, SOL, or XRP with strict risk management.
Thus, each of the assets considered can be “the best” in its niche, but overall, Bitcoin futures still set the market standard, and Ethereum is the closest alternative. The main thing is to understand the characteristics of each instrument and correlate them with your trading strategy.
