Perpetual futures are coming to Wall Street, but that may not be good news for DeFi
I recently came across a news story that I think is more worth thinking about than simply watching crypto prices go up and down.
The U.S. is pushing to bring perpetual futures into regulated markets, but traditional financial institutions like CME have objected.
Perpetual futures used to develop mainly on crypto trading platforms. Now, traditional financial markets are starting to embrace this type of trading too.
I think there are two changes worth paying attention to here.
On the one hand, it shows that trading mechanisms developed in crypto are gradually being adopted by traditional financial markets.
On the other hand, as regulation opens up, competition could become even fiercer.
When I researched HYPE before, I focused mainly on trading volume, protocol revenue, buybacks, and the token’s ability to capture value.
But now it seems there’s another question to consider:
If traditional financial institutions can also offer similar perpetual futures trading in the future, how long can crypto platforms maintain their competitive edge?
Of course, the entry of traditional institutions could also expand trading demand across the industry.
So for now, it’s too early to simply call this bullish or bearish.
What I’m more focused on is who will ultimately gain users, trading volume, and revenue as the market grows.
That may be more worth tracking over the long term than short-term price increases.
#defi #hype #Crypto
I recently came across a news story that I think is more worth thinking about than simply watching crypto prices go up and down.
The U.S. is pushing to bring perpetual futures into regulated markets, but traditional financial institutions like CME have objected.
Perpetual futures used to develop mainly on crypto trading platforms. Now, traditional financial markets are starting to embrace this type of trading too.
I think there are two changes worth paying attention to here.
On the one hand, it shows that trading mechanisms developed in crypto are gradually being adopted by traditional financial markets.
On the other hand, as regulation opens up, competition could become even fiercer.
When I researched HYPE before, I focused mainly on trading volume, protocol revenue, buybacks, and the token’s ability to capture value.
But now it seems there’s another question to consider:
If traditional financial institutions can also offer similar perpetual futures trading in the future, how long can crypto platforms maintain their competitive edge?
Of course, the entry of traditional institutions could also expand trading demand across the industry.
So for now, it’s too early to simply call this bullish or bearish.
What I’m more focused on is who will ultimately gain users, trading volume, and revenue as the market grows.
That may be more worth tracking over the long term than short-term price increases.
#defi #hype #Crypto