Decentralized perpetual futures have hit a major milestone as their monthly trading volume in October exceeded $1.3 trillion, which is nearly double the figures from September.
It was also the first time the monthly trading volume on decentralized exchanges (DEXs) exceeded $1 trillion, evidence of them gaining ground on rival centralized exchanges (CEXs).
The open interest (OI) in perps was recorded to be approximately $17.9 billion.
According to DeFi data analytics platform DeFiLlama, on-chain perpetuals’ monthly trading volume for September was over $738 billion.
Perps go from niche experiment to trillion-dollar engine
Perpetual futures, crypto derivatives that let traders bet on prices without expiry, have long been the domain of big centralized exchanges like Binance, Coinbase, and OKX. But as those exchanges have tightened their risk controls and compliance rules over the past year, a growing share of liquidity has started to move on-chain.
Decentralized platforms such as Hyperliquid, Lighter, EdgeX, and those built on Ethereum and Arbitrum have stepped in to fill the gap, handling more than a trillion dollars in notional trading volume last month.
Sentora researcher Juan Pellicer wrote that the shift to on-chain trading is being driven by the tighter risk and reduced market-making activities on CEXs.
On-chain protocols have developed new execution models that cater to niche and slower-moving traders, the “long tail” of the market, while offering transparency and composability.
“On-chain derivatives are no longer a sideshow,” the Sentora report noted. “They’re now the marginal venue for leverage in crypto, shaping how risk transmits through the system.”
Fed rate cuts add fuel to leverage demand
The U.S. Federal Reserve’s latest rate cut, its second this year, has lowered the cost of dollar funding, indirectly boosting leverage appetite across risk assets. By reducing short-term interest rates, the Fed has made holding fully funded spot positions less attractive relative to leveraged exposure via perps.
With lower base rates, the shadow value of collateral is lifted, and this also reduces “USD funding alternatives,” effectively making “perp exposure cheaper relative to holding fully-funded spot.”
The October 10 market turbulence played a major role
Other reports say this record volume may not be unconnected to the brief market crash that occurred on October 10. The incident, which was sparked by President Donald Trump’s announcement of more tariffs on China, saw the crypto market power through the largest liquidation event on record to date.
Some major CEXs experienced some downtime and saw glitches due to the volumes and pressure of users, prompting more traders to utilize DEXs more.
Hyperliquid, the leading perpetual DEX, saw the liquidation of more than 1,000 wallets on October 10. That day saw “on-chain perpetual markets hit a record single-day trading volume of $78 billion,” and it showed observers that decentralized platforms have evolved and are ready to play in the same field as their centralized counterparts.
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