Hyperlichid, once the leader not answered in the perpetual market in the chain, is quickly giving emerging platforms such as the lighter and Aster.
At one time in May, hyperlichid represented 71% of the chain cryptographic perpetual market. That number is now 38%, according to the user of pseudymous dune analytics @uwusanauwu.
Meanwhile, competitors such as Aster backed by A16z backed by Binance work have increased their market share to 16.8% and 14.9%, respectively, with a single lower digit in May. These percentages are based on weekly negotiation volumes and exclude washing trade figures.
The chain perpetual market refers to the decentralized trade of perpetual futures contracts (without expiration) That happens directly in a block chain, ensuring transparency and immutability.
The perpetuals are derived without an expiration date, which allows the specular operators on the price movements of the underlying assets. These contracts use a unique financing rate mechanism to maintain perpetual prices in alignment with the spot price of the underlying asset.
The perpetual market in the chain has experienced rapid growth. All combined platforms have registered a cumulative negotiation volume of almost $ 700 billion in the last four weeks, with an activity that reaches $ 42 billion in the last 24 hours alone.
The number of protocols has grown significantly from only two in 2022 to more than 80 from today. This expansion perfectly exemplifies capitalism at work: a prosperous market attracts an avalanche of new participants, increasing competition and eroding the market share and the profitability of the first pioneers.
The absence of traditional entry or output barriers, a key characteristic of the cryptography market, allows any person with technical knowledge to launch new protocols and compete.
Lately, a kind of war has developed between hyperlichid and Aster. Last week, Hyperliquid listed Aster’s token native token, allowing users to longify or shorten the token with 3X leverage. On Monday, Aster responded by offering Hyperliquid’s exaggerated perpetuals with an leverage 300x.
