Ethereum open interest reached an unprecedented $58 billion in July 2025, establishing a new milestone as it surpassed Bitcoin’s derivatives activity. The 100% monthly surge reflects heightened institutional engagement and confidence in ETH’s expanding role in decentralized finance and smart contract ecosystems.
While Ethereum derivatives skyrocketed, Bitcoin’s open interest declined by 15% during the same period. Institutional momentum remains pronounced, with CME’s Ethereum futures contracts setting their own record at $7.85 billion.
Market analysts caution that accumulating leverage could trigger sudden price corrections and increased volatility. The elevated positioning leaves markets vulnerable to cascading liquidations should sentiment shift abruptly.
Noted analyst Merlijn The Trader warned the significant leverage in Ethereum markets may amplify price movements, potentially creating conditions for a ‘vertical move’ regardless of directional bias. The surpassing of Bitcoin underscores Ethereum’s maturation as an institutional-grade asset class.