Key Developments in Decentralized Finance
In October, decentralized platforms achieved a significant milestone, trading over $1.3 trillion in perpetual contracts within a single month. This unprecedented volume signifies a profound shift in the cryptocurrency ecosystem, which was previously dominated by centralized platforms in the derivatives market. This rapid growth is attributed to structural changes in usage, available tools, and increasing trader confidence.
In brief
- •In October, perpetual contracts on Decentralized Exchanges (DEXs) reached a record monthly volume of $1.3 trillion, a threshold never before achieved.
- •This surge in volume is nearly double that recorded in September, which stood at $738 billion.
- •Several decentralized platforms, including Hyperliquid, Lighter, and EdgeX, played a crucial role in this increase.
- •The tightening of regulations on centralized exchanges (CEXs) has contributed to a migration towards DEXs, which are perceived as more flexible and transparent.
A Record Month for DEXs: The Numbers
October marked a turning point for crypto derivatives. According to DeFiLlama data, decentralized perpetual contracts (DEX perps) surpassed the $1,000 billion monthly volume mark for the first time, reaching a total of $1.3 trillion.
This figure represents almost double the volume observed in September, which was $738 billion. Concurrently, the open interest (OI) on perpetual contracts reached a peak of approximately $17.9 billion, indicating the growing importance of these instruments in on-chain markets.
Several factors contribute to this spectacular growth in volume on DEXs:
- •The emergence of new platforms: Platforms such as Hyperliquid, Lighter, and EdgeX, deployed on Ethereum or Arbitrum, have gained prominence, particularly as centralized platforms experience shifts in their market engagement.
- •The regulatory environment for CEXs: Increased compliance requirements and reduced market-making activities on centralized platforms have redirected some liquidity towards decentralized alternatives.
- •Evolving user profiles: Juan Pellicer, a researcher at Sentora, notes that DEXs now cater to the needs of the "long tail" of traders, including slower or less active profiles, through adapted execution models.
- •Inherent strengths of DEXs: Transparency, composability, and the open nature of on-chain protocols offer greater flexibility and attract users seeking autonomy.
This combination of technical innovations, regulatory adjustments on CEXs, and the increasing maturity of decentralized protocols has enabled DEXs to cross a significant strategic milestone. They are no longer merely an alternative but are becoming a central player in the crypto derivatives market.
Monetary Policy and Market Shocks: Catalysts for Migration
In addition to the organic growth of the sector, certain cyclical factors contributed to the surge in volumes during October. Notably, the second interest rate cut of the year by the U.S. Federal Reserve played an amplifying role.
By lowering short-term rates, the Fed makes fully funded spot investments less attractive, while increasing the implied value of collateral used for leveraged products. Consequently, perpetual contracts become mechanically more competitive, enhancing their appeal to yield-seeking investors.
However, the events of October 10, 2025, likely crystallized this trend. On that day, an announcement by Donald Trump regarding new tariffs on China triggered a widespread crash in crypto markets.
This situation led to the largest wave of liquidations recorded to date. Some centralized platforms experienced slowdowns and even outages, compelling many traders to shift their activities to DEXs. The volume traded on decentralized perpetual markets on that specific day reached $78 billion, setting a historic daily record.
The rise of DEXs in perpetual contracts signifies a turning point for the crypto market. Driven by both conjunctural factors and structural changes, this dynamic has the potential to sustainably redefine the balance between centralized finance and DeFi, while simultaneously presenting new challenges related to regulation, transparency, and resilience.