Current trends in the decentralized finance industry show that customary decentralized exchanges are losing popularity.
CoinGecko’s 2024 Industry Report considerably reveals a large 10.6% decrease in the total value locked (TVL) in decentralized exchanges (DEXs). Newer components, such as liquid staking, and lending, along with bridges, currently command the DEX market. These specific segments have contributed more than $34 billion, representing 30.9% of the total TVL, thereby indicating an important change in how users interact with DeFi.
However, despite these challenges, decentralized exchanges show promise. Specifically, a number of perpetual decentralized exchanges are experiencing large growth and could potentially lead the market segment. Furthermore, an important shift is now occurring, indicating a large trend toward perpetual DEXs, which offer a greatly more dynamic and flexible approach to trading.
This article explores three key reasons for the growing interest in perpetual DEXs. First, it examines why they present a compelling alternative to classical DEXs. Second, it details how perpetual DEXs are transforming cryptocurrency trading. Third, it depicts how they are overcoming at least several limitations of customary platforms.
What is a Perpetual DEX?
Perpetual DEXs are decentralized platforms where traders can trade perpetual contracts or swaps. These contracts let traders bet on how the price of an asset will move without actually owning the asset.
Unlike regular spot trading, where assets are bought and sold right away, perpetual swaps let traders enter into agreements that follow the price of an asset, with no expiration date.
Perpetual DEXs use smart contracts, which are automated programs running on blockchain networks, to manage trades. These contracts automatically handle buying, selling, and adjusting positions based on set rules, making everything transparent and cutting out the need for middlemen.
Since they run on decentralized networks, perpetual DEXs give users full control over their assets, lowering the risk of relying on other parties and improving security.
A Look at a Top Perpetual DEX: The True Trade
A good example of a leading perpetual DEX is The True Trade, a decentralized exchange built on the BNB Chain. It offers a simple yet powerful trading experience, ideal for both beginners and experienced traders.
With gasless trading, users don’t need to worry about paying transaction fees or gas costs, making it a highly cost-efficient option for on-chain trading. The platform also supports KYC-free onboarding, allowing users to sign up quickly and privately.
The True Trade provides high leverage up to 1001x, empowering traders to capitalize on market movements with amplified positions. It features minimal fees, ensuring high profitability for users, and offers deep liquidity for smooth and high-volume trades.
The platform also excels in offering flexibility with options like up or down trading, allowing users to predict short-term price movements in assets like Bitcoin, Ethereum, and Solana.
Whether you’re looking to trade BTC or engage in perp markets, The True Trade ensures seamless, transparent payouts and high open interest for all trades.
Collaborations with Chainlink, TradingView, and BNB Chain enable The True Trade to deliver cutting-edge features and a seamless trading experience.
Why are Perpetual DEXs the Future in Crypto Trading Compared to Classical DEXs
The key reasons why perpetual DEXs may represent the future of crypto trading, compared to classical DEXs, are:
- 24/7 Market Access – Perpetual DEXs enable continuous trading with contracts that have no expiration date, which is perfectly suited for the always-active crypto market. In contrast, classical DEXs focus on spot trading, limiting opportunities for traders to capitalize on market trends.
- Leverage Without Centralization – Perpetual DEXs allow traders to access leverage directly on-chain, providing advanced tools without needing centralized intermediaries. Classical DEXs generally do not offer leveraged trading, limiting their functionality.
- Innovative Liquidity Models – Perpetual DEXs employ hybrid systems combining AMM with order books to ensure deep liquidity and minimize slippage. Classical DEXs rely solely on AMMs, which can suffer from inefficiencies like impermanent loss in volatile markets.
- Enhanced Scalability – With Layer 2 solutions, perpetual DEXs offer faster, cheaper transactions, making advanced trading accessible to more users. Classical DEXs often face higher fees and slower speeds during network congestion.
- DeFi Composability – Perpetual DEXs integrate with other DeFi protocols, enabling traders to combine yield farming and perpetual trading for complex strategies. Classical DEXs are less composable, focusing primarily on simple token swaps.
Data Confirms All We Said
The year 2024 is proof that decentralized perpetual protocols have the potential to represent the future of crypto trading (leaving aside all the above-mentioned reasons), as this category was driven by unprecedented growth in trading volume and open interest.
To support this argument, we will once again reference the data from CoinGecko’s 2024 Industry Report.
In 2024, the total trading volume across the top 10 perp DEXs reached $1.5 trillion, more than doubling 2023’s $647.6 billion. This marks a 138.1% year-on-year growth, with $492.8 billion traded in Q4 alone. This surge reflects a clear acceleration in the adoption of decentralized trading solutions, as these platforms provide unmatched transparency, user control, and liquidity.
Open interest across the top 10 perp DEXs also exhibited explosive growth, reaching an all-time high of $6.7 billion in December before closing the year at $4.8 billion. This marks an astonishing 333.6% growth since January, with a 104.3% increase in Q4 alone.
The rapid ascent of decentralized perpetual protocols is indicative of broader market trends. Unlike centralized exchanges, perp DEXs prioritize decentralization and security, offering traders a transparent and self-sovereign trading environment.
Moreover, features like perpetual contracts—allowing traders to speculate without expiration—are inherently suited for the fast-paced nature of cryptocurrency markets.
Final Thoughts
So, perpetual DEXs are changing the game in crypto trading by tackling many of the challenges traditional decentralized exchanges face.
And if someone tells you they’re not, now you have the data and arguments to prove otherwise, as this article demonstrates that perpetual DEXs are already becoming a central part of the DeFi ecosystem, offering traders greater transparency, control over their assets, and a more secure trading environment.
