Bitget Launches MAGMA Perp as Crypto Derivatives Hit $86T Volume Mark

Bitget, a leading cryptocurrency exchange, has launched a new perpetual contract for U-based MAGMA, offering traders a leverage range of 1-20x. The move underscores the platform's commitment to expanding its derivatives product suite amid growing demand for leveraged trading in the crypto market. The U-based MAGMA contract allows users to speculate on price movements without holding the underlying asset, reflecting the broader trend of perpetual contracts gaining traction in the industry.

The product's launch comes at a time when crypto derivatives are reaching new levels of maturity and institutional adoption. In 2025, the global crypto derivatives market processed nearly $86 trillion in total volume, with daily trading averaging around $265 billion. Binance continued to dominate the market, processing over $25 trillion in volume, while exchanges like OKX, Bybit, and Bitget followed closely behind. The growing institutional interest has led to a shift from retail-driven high-leverage models to more sophisticated strategies like hedging and basis trading according to market analysis.

The rise of perpetual exchanges has transformed the way traders interact with digital assets. These platforms offer unique financial instruments that allow for 24/7 trading and position management without worrying about expiration dates. Perpetual contracts use funding rates to ensure their price aligns with the spot market, making them particularly attractive for both short-term and long-term strategies as research shows.

Why the Standoff Happened

Despite the expansion of institutional adoption, the derivatives market faced significant challenges in 2025. The year saw over $150 billion in forced liquidations, with a single deleveraging event in October wiping out $19 billion in two days. This was triggered by macroeconomic shocks, including the announcement of 100% tariffs on Chinese imports by U.S. President Donald Trump, which caused a sudden shift in risk appetite. Long positions in the market were hit hardest, with 85–90% of liquidations attributed to leveraged bullish bets .

The volatility exposed systemic risks in the market, particularly in the mechanics of liquidation and leverage chains. While institutions have brought liquidity and depth to the market, the concentration of trading activity on a few platforms has raised concerns about tail risks. For instance, Binance alone held 28% of daily average open interest, while the top five exchanges collectively controlled over 80% of the market.

Risks to the Outlook

The growing leverage in the derivatives market has also amplified the risks for traders. As Bitget introduces the new MAGMA perpetual contract with 1-20x leverage, the potential for both gains and losses is significantly higher. Liquidation risks are particularly acute in volatile markets, where adverse price movements can quickly erode margins. This was evident in the broader market's performance in 2025, where altcoins like Solana, Dogecoin, and Cardano recorded double-digit year-to-date losses.

Regulatory uncertainties further complicate the outlook. As jurisdictions like the United States, European Union, and Asia introduce clearer frameworks, the market is expected to mature. However, the evolving legal landscape introduces volatility in trading conditions, particularly for platforms operating in multiple regions. For example, the Chicago Mercantile Exchange (CME) has gained dominance in Bitcoin futures open interest, as institutional players favor regulated venues.

What This Means for Investors

The introduction of the U-based MAGMA perpetual contract by Bitget reflects the broader trend of exchanges offering more flexible and scalable trading options. Traders can now profit from both bullish and bearish movements, with the added benefit of 24/7 access to the market. The product is also aligned with the growing demand for advanced trading tools like stop-loss and take-profit orders, which help manage risk in high-leverage environments as market data shows.

For institutional investors, the shift to regulated derivatives markets is also significant. As spot ETFs and regulated futures products gain traction, the focus is moving toward structured strategies that involve hedging and risk management. This shift has already begun to reshape the market structure, with platforms like the CME gaining ground over traditional crypto-centric exchanges. For retail traders, the increased liquidity and market depth mean more efficient execution of trades and reduced slippage, particularly for large-cap assets like Bitcoin and Ethereum.

As the derivatives market continues to evolve, the role of perpetual contracts is likely to expand. With regulatory clarity on the horizon and growing institutional participation, the market is expected to become even more sophisticated in 2026. However, traders must remain vigilant about the risks associated with high leverage and macroeconomic shocks, which continue to shape the market's dynamics.