Derivatives become the core tool of DeFi, with monthly trading volume surpassing 1.73 trillion yuan

Source: TokenPost Original Title: Derivatives Rise as Core Tools in DeFi… Monthly Trading Volume Surpasses 1,730 Trillion Original Link:

Derivatives Evolve from Speculative Tools to DeFi Infrastructure

Cryptocurrency derivatives are transforming from mere speculative instruments into core elements of decentralized finance(DeFi). Especially perpetual contracts(perps) and options products have gone beyond high-risk, high-reward strategies to become “DeFi strategic tools” that enhance liquidity and capital efficiency.

Market experts indicate that this shift is accelerating toward 2025. Industry analysts recently stated, “The integration of derivatives into DeFi is deepening, and their influence is expanding.”

Explosive Growth in Trading Volume… Monthly Trading Surpasses 1.73 Quadrillion

Perpetual contract trading on decentralized exchanges has generated a monthly trading volume of approximately $1.2 trillion(about 1.73 quadrillion yuan), with rapid growth. Particularly, decentralized exchanges with high-speed matching systems are quickly expanding their market share.

The reason behind this growth is the stagnation of the “altcoin spot market.” As prices struggle to rise, traders are shifting heavily toward derivatives trading that promises higher returns.

Derivatives support leverage of over 50x, making them popular because small investments can pursue large gains(or losses). In fact, speculative positions in derivatives reached 10% of the overall market in the first half of 2025, then dropped to 4% after a large-scale liquidation event in October.

From Speculation to Strategy… The Expanding Role of Derivatives in DeFi

Market analysis suggests that “derivatives are now used as a ‘fundamental component’ of DeFi.” They interact with liquidity pools, lending platforms, and more, surpassing mere speculation and being applied in complex financial strategies.

For example, traders can hedge price risks through perpetual contracts while providing liquidity to earn passive income. Additionally, using perpetual contracts as collateral to participate in yield products is also gaining attention.

Institutional Access and Strategic Applications Drive DeFi Evolution

This trend indicates that DeFi is no longer in the experimental early stage but has evolved into a mature financial infrastructure focused on maximizing capital efficiency and liquidity.

As traditional financial investors, institutions, advanced traders, and ordinary investors actively use derivatives, DeFi’s accessibility and strategic diversity are expanding.

Key Points Summary

Market Interpretation

Derivatives are shedding their image as extreme speculative tools and becoming means of liquidity and risk management in DeFi. This reflects the maturing of the cryptocurrency market and increased strategic diversification.

Strategic Recommendations

• Use multifunctional perpetual contracts for liquidity provision or collateral utilization
• When leveraging, consider risk management settings to mitigate liquidation risks
• Make investment decisions based on the degree of derivatives integration on DeFi platforms

Terminology Explanation

• Perpetual Contracts(perps): Futures contracts without expiration dates, can be maintained indefinitely
• Leverage(Leverage): Borrowing to amplify investments; both gains and losses are magnified
• Liquidity Pool(Liquidity Pool): Structure where users deposit assets to provide liquidity and earn fees or rewards
• Hedge(Hedge): Strategy of taking opposite positions to avoid risk