How Perpetual DEXs Are Capturing the Market: Analysis and Prospects

user avatar

by Giorgi Kostiuk

2 years ago

Analysis of the CoinGecko 2024 report shows significant growth in the popularity of perpetual DEXs. Let's explore the benefits and reasons for this phenomenon.

What is Perpetual Trading

Perpetual trading uses perpetual futures contracts to trade assets like Bitcoin and Ethereum without owning them. Unlike standard futures, these contracts have no expiration date, allowing indefinite holding. Its popularity has increased due to flexibility and higher liquidity, facilitating quick trades. Leverage is also available, enhancing potential profits but also increasing risks.

Benefits of Perpetual Trading

The absence of an expiration date is a major advantage, allowing long-term position holding. Funding rate mechanisms balance futures prices with actual asset prices. Traders can leverage to manage larger positions with minimal investments, yet careful risk management is essential to avoid automatic position liquidation when balance falls below mandatory levels.

The Current State of Perpetual DEXs

2024 marks significant growth for perpetual DEXs, with top 10 platforms reaching over $1.5 trillion in trading volumes, up 138% from the previous year. Open interest reached a record $6.7 billion by December's end. This reflects an increasing interest in decentralized platforms offering better control and security than centralized exchanges.

Perpetual DEXs are becoming a vital part of the DeFi ecosystem, providing a more secure and transparent trading environment. Their growth indicates they are the future of crypto trading, not just a trend.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Regulatory Discussions on Stablecoin Yield and Banking Reserves

Regulatory discussions on stablecoin yield and banking reserves are ongoing in Washington, focusing on the implications for issuers and the requirement to maintain reserves in bank deposits.

user avatarMiguel Rodriguez

Binance Declares Shutdown of Mining Pool Services.

Binance will discontinue its mining pool and related services on November 10, 2026, requiring miners to redirect their machines.

user avatarRajesh Kumar

Banks Counter Stablecoin Growth with Higher Deposit Rates

A new working paper reveals that banks can slow the growth of stablecoins by increasing deposit rates.

user avatarLuis Flores

Polygon Labs Completes Acquisition of Coinme

Polygon Labs has finalized its acquisition of Coinme, enhancing its payment capabilities with numerous state licenses.

user avatarArif Mukhtar

Bitcoin Open Interest Sees Slight Decline While Funding Rates Remain Positive

A recent snapshot of the Bitcoin derivatives market revealed that open interest has decreased by 0.69% over the past 24 hours, now standing at 768 billion. Despite this decline, the funding rate remains positive at 0.00035 per eight-hour interval, suggesting that long positions are still willing to pay shorts on perpetual contracts.

user avatarMaria Gutierrez

French Lawmakers Approve Amendment on Crypto Taxation

French lawmakers have approved an amendment to the 2027 budget that changes the taxation of gains when converting cryptocurrencies to stablecoins.

user avatarDavid Robinson

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.