Decentralized exchange (DEX) Hyperliquid recorded a growing trend in the 24/7 perpetual futures market as non-traders turn to oil during traditional off-market hours and weekends, according to JP Morgan analytics.
When markets close, crypto stays open
The current concerns around the geopolitical crisis led to the shutdown of traditional financial markets, including CME, pushing more users to crypto-native platforms like Hyperliquid, now available 24/7.
According to JP Morgan analytics, earlier this month, the WTI crude oil perpetual futures contract (CL-USDC) on Hyperliquid spiked, with a trading volume reaching around $1.7 billion by the middle of March.
Analysts noted CL-USDC is the third most traded product after Bitcoin and Ether on the exchange. They trade in the stablecoin USDC with a leverage of up to 20x, providing traders looking for exposure another way to make profit. They also highlighted the advantage of trading traditional assets even after market hours, opening more windows of interest in decentralized exchanges like Hyperliquid.
Hyperliquid’s feature attracts more users
The high-performance DEX has been gaining popularity for its use of on-chain limit order books, providing accurate pricing. It reflects an increasing market demand for ’24/7 trading of traditional assets.’ Furthermore, the platform processes faster transactions, allowing instant trades, a key advantage for algorithmic and high-frequency traders who rely on speed.
“This traction is likely to grow over time and extend to other assets beyond commodities as decentralized exchanges exploit a gap in traditional markets by facilitating 24/7 trading in traditional assets,” an analysts said.
It also supports portfolio margining, where traders assess risk across their entire portfolio instead of on a position-by-position basis. This improves capital efficiency, something usually found on more sophisticated centralized platforms, according to the analysts.
Are DEXs taking over CEXs?
Most traditional markets do not offer perpetual futures or even high returns available on DEXs; however, these DEXs have begun to chip away at the dominance of centralized platforms in crypto derivatives, particularly among ‘mid-tier’ venues.
This, according to analysts, is due to traders being more drawn to continuous trading, self-custody, and faster execution.
