The on-chain derivatives market is cold: three consecutive weeks of decline, risk appetite quietly changed
The on-chain derivatives market has changed suddenly. According to DefiLlama data, trading volume has suffered a Waterloo for three consecutive weeks, indicating that the market risk appetite is quietly cooling down. This week, the figure has even fallen to a low of US$5.11 billion, which may hit a new low in weekly trading volume since the beginning of 2023.
The macroeconomic haze is shrouded in uncertainty, the outcome of the US presidential election, the escalation of tensions in the Middle East, and the expectation that the Federal Reserve may maintain interest rates unchanged, together weave a complex emotional web that affects investors' decisions. However, there is light at the end of the tunnel in adversity. In 2024, the average monthly trading volume of the on-chain derivatives market soared 357% year-on-year, demonstrating the vigorous vitality of the decentralized derivatives market. The rise of newcomers such as Blast and Hyperliquid has injected fresh blood into the market and promoted its continued expansion.
But it is worth noting that despite the strong momentum of decentralized platforms, their trading volume is still far behind that of centralized exchanges. Take Binance as an example, its 24-hour trading volume is as high as 46.2 billion US dollars, while the total trading volume of decentralized platforms only accounts for about 11% of it. The gap is obvious. In this contest between tradition and innovation, the evolution of the market structure is still full of variables.
