Perpetual futures are on track to become one of the dominant trading instruments in global finance, with decentralized exchange Hyperliquid demonstrating how blockchain-based infrastructure could challenge traditional markets, according to Pantera Capital.
The blockchain-focused asset manager said in a Wednesday X post that perpetual futures offer structural advantages over traditional derivatives, including 24/7 trading, no contract expiries, simpler position management and continuous price discovery, making them increasingly attractive beyond crypto markets.
Pantera, an investor in the Hyperliquid ecosystem, said Hyperliquid has become the leading example of that shift by expanding perpetual futures beyond cryptocurrencies into equities, commodities and stock indices as part of founder Jeff Yan’s vision of “housing all of finance.”
Hyperliquid’s growth has drawn attention from traditional finance, including NYSE parent Intercontinental Exchange (ICE), whose CEO, Jeffrey Sprecher, urged regulators to create a “level playing field” for launching 24/7 onchain perpetual futures contracts.
Pantera Capital said Hyperliquid has increased the market share of onchain perps, as DEX perps volumes rose to 14% of centralized exchange (CEX) perps volume, up from less than 1% in early 2023 when Hyperliquid first launched.
Hyperliquid accounts for roughly 40% of onchain perpetual futures trading volume, according to Pantera. It ranks as the fourth-largest fee-generating protocol in the crypto industry, generating $13.5 million in weekly fees in the past seven days, according to DefiLlama data.
Top protocols by weekly fees generated. Source: DefiLlama
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Traditional finance embraces 24/7 markets
Cryptocurrency platforms and TradFi institutions are bringing more traditional investment products under blockchain wrappers.
On May 22, OKX announced plans to launch perpetual futures based on ICE’s Brent crude and West Texas Intermediate crude benchmarks under a partnership with the exchange operator.
Earlier in March, the NYSE partnered with tokenization platform Securitize as part of a broader effort to develop blockchain-based stock trading infrastructure with 24/7 trading and settlement for Wall Street.
In January, the NYSE’s parent company, the Intercontinental Exchange (ICE), shared plans for a tokenized securities venue designed for 24/7 trading, instant settlement, stablecoin-based funding and onchain settlement.
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