- •On-chain perpetual trading volume exceeds $9 trillion
- •Institutional demand and ETFs fuel market growth
- •DEX competition drives trader risk appetite
The world of crypto derivatives is experiencing a massive boom. Perpetual trading volume has surged past $9 trillion, marking a major milestone for the sector. This growth has been largely driven by decentralized exchanges (DEXs) offering perpetual contracts directly on-chain. Traders are increasingly turning to these platforms for faster, non-custodial, and transparent trading experiences.
This sharp rise in volume highlights a growing appetite for risk among both retail and institutional traders. As confidence in on-chain tools increases, so does the capital flowing through them.
Institutional Interest and ETFs Add Fuel to the Fire
A key driver behind this record-breaking volume is the growing interest from institutional players. With the introduction and growing popularity of crypto ETFs, large funds now have regulated pathways to gain exposure to digital assets. This, in turn, spills over into perpetual futures markets as investors seek leverage and hedging opportunities.
ETFs also boost mainstream credibility, drawing in new market participants who further amplify the demand for on-chain products. These instruments provide a safer entry point, which eventually leads some traders deeper into the more dynamic world of perpetual derivatives.
DEX Competition and Risk Appetite Drive Growth
The intense competition between perpetual DEXs like dYdX, GMX, and others is pushing innovation forward. These platforms offer features such as high leverage, improved user experience, and incentive programs that attract liquidity and activity.
With lower barriers to entry and increasing decentralization, more traders are choosing these platforms over traditional centralized exchanges. This competition not only improves service quality but also encourages greater risk-taking — a trend evident in the soaring trading volumes.
As more traders become comfortable with advanced products and as the market matures, perpetual trading is poised to become an even larger component of the crypto economy.