Hyperliquid, once the undisputed leader in the market for eternal, is quickly released soil for new platforms such as lighter and aster.
At one point in May, Hyperliquid accounted for 71% of the on-chain crypto perpetuals market. This number is now at 38%, according to Pseudonymous Dune Analytics -User @uwusanauwu.
Meanwhile, competitors such as A16Z supported lighter and Binance Labs-supported Aster have increased their market share to 16.8% and 14.9% from lower-digit in May respectively. These percentages are based on weekly trading quantities and excludes Tall for Wash trading.
The market on the chain of eternal refers to the decentralized trade in eternal futures contracts (Without Expired) It occurs directly on a blockchain and ensures transparency and immutability.
The Ever are derivatives without expiry date, which allows traders to speculate on the price movements for the underlying assets. These contracts use a unique financing speed mechanism to maintain eternal prices in accordance with the spot price of the underlying asset.
The on-chain eternal market has experienced rapid growth. All platforms combined have recorded a cumulative trading volume of almost $ 700 billion over the past four weeks, with activity reaching $ 42 billion in the last 24 hours alone.
The number of protocols has grown significantly from only two in 2022 to over 80 years from today. This expansion exemplifies perfect capitalism at work: a thriving market attracts a flood of new participants, increases competition and erodes the market share and the profitability of the early pioneers.
The absence of traditional barriers to entry or exit, a key function in the crypto market, allows anyone with the technical know-how to launch new protocols and compete.
Lately, some kind of war has unfolded between Hyperliquid and Aster. Last week, Hyperliquid Aster erected the native token Asts, which let users long or mapped the token with 3x leverage. On Monday, Aster responded by offering hyperliquids hype eternal with 300x leverage.
