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Let's continue the series with the derivatives trading sub-sector, which is closely related to 301010, decentralised exchanges, but strongly focused on derivatives and/or specifically perpetuals, not solely on spot trading.
301020, Derivatives Trading
Definition: Platforms facilitating the creation and trading of derivatives like options, perpetual futures, and synthetic assets.
The combined sub-sector Market Cap stands at $13,459m as of 16/12/2024, up c. 116% from $6,231m as of 01/01/2024, compared to c. 125% growth in the total crypto Market Cap over the course of 2024. Notably, eight of the tokens included below have not been trading in January 2024, with three of them only on the market for a few weeks, so their base values are the most recent ones available. Without $HYPE and its $6b+ value creation in December, the sub-sector would've only seen c. 34% growth YTD.
Below is the proposed composition of the 301020 sub-sector, from largest to smallest by market cap, having reviewed 250+ projects over the course of the past week from both the context-of-use and exchange accessibility perspectives:
$HYPE
A decentralised perpetual futures exchange with an order book model, also an L1, limited exchange availability, but so far unlimited hype
Market Cap: $8,029m
YTD: +269% (from 29/11/24)
$DYDX
A leading decentralised derivatives exchange specialising in perpetual contracts, clearly used to define this sub-sector, ETHDYDX migration is ongoing
Market Cap: $1,557m
YTD: +40%
$PENDLE
Tokenises and enables trading of future yield, effectively creating yield-based derivatives markets
Market Cap: $1,016m
YTD: +782%
$SNX
Provides synthetic assets and facilitates decentralised derivatives trading and a native exchange
Market Cap: $1,008m
YTD: -20%
$AEVO
A decentralised options and perpetual trading L2 protocol for crypto derivatives, merged with Ribbon Finance ($RBN)
Market Cap: $461m
YTD: +30% (from 13/03/24)
$GMX
A decentralised perpetual futures and spot exchange on Arbitrum and Avalanche
Market Cap: $377m
YTD: -27%
$DRIFT
A perpetual futures exchange on Solana, exploring prediction markets too
Market Cap: $349m
YTD: +503% (from 18/05/24)
$BLUE
Offers decentralised perpetual futures trading on Sui
Market Cap: $114m
YTD: +116% (from 12/12/24)
$APEX
Enables decentralised perpetual contracts trading with leverage and cross-chain compatibility
Market Cap: $95m
YTD: +576%
$OX
A perpetuals exchange focused on meme coins
Market Cap: $91m
YTD: +100% (from 26/03/24)
$F
A decentralised derivatives platform enabling futures trading on customisable assets on Base
Market Cap: $89m
YTD: -30% (from 06/12/24)
$GNS
Enables leveraged trading of synthetic derivatives
Market Cap: $82m
YTD: -51%
$PERP
Allows trading of perpetual futures contracts on Optimism
Market Cap: $77m
YTD: -7%
$FUL
A decentralised perpetual futures exchange on Cronos
Market Cap: $26m
YTD: +17%
$HEGIC
A decentralised protocol for trading peer-to-pool on Arbitrum
Market Cap: $22m
YTD: -30%
$CTX
Offers synthetic derivatives trading, builds indexes offering
Market Cap: $22m
YTD: +77%
$KWENTA - migrating into $SNX
A front-end for trading perpetual contracts on Synthetix, built on Base
Migrating into $SNX tokens, so a quick shout-out to them here before being excluded not to be double-accounted for moving forward as Synthentix Exchange
Market Cap: $18m
YTD: -71%
$ZEX
Provides options and futures trading on Solana
Market Cap: $17m
YTD: +93% (from 04/07/24)
$NUTS
A decentralised on-chain options protocol
Market Cap: $7m
YTD: -47% (from 21/05/24)
$DERI
Decentralised derivatives L3 protocol
Market Cap: $3m
YTD: +8%
Let us also explore what the composition of the sub-sector looks like as of today as we prepare for a longer-form analysis of the 2024 performance for this and the other DeFi sub-sectors in search of fundamental indicators of outperformance and underperformance alike.
There have been notable changes and movements since the start of this year, particularly for newcomers $PENDLE, $DRIFT and $APEX. $HYPE now comfortably maintains and extends its dominance of the sub-sector to arguably outgrow it altogether. Curious drop in value for $SNX and $GMX, long-standing players in the space, and a surprisingly underwhelming year for most others who have been around and trading since at least early 2023.
We will explore various possible reasons for such outcomes in the 2024 DeFi Report. Now, onto the next sub-sector classification, hopefully ready before Christmas – 301030 Decentralised Lending, which is the sole reason I got into researching DeFi back in Summer 2020 and technically never left.
Sources:
Let's continue the series with the derivatives trading sub-sector, which is closely related to 301010, decentralised exchanges, but strongly focused on derivatives and/or specifically perpetuals, not solely on spot trading.
301020, Derivatives Trading
Definition: Platforms facilitating the creation and trading of derivatives like options, perpetual futures, and synthetic assets.
The combined sub-sector Market Cap stands at $13,459m as of 16/12/2024, up c. 116% from $6,231m as of 01/01/2024, compared to c. 125% growth in the total crypto Market Cap over the course of 2024. Notably, eight of the tokens included below have not been trading in January 2024, with three of them only on the market for a few weeks, so their base values are the most recent ones available. Without $HYPE and its $6b+ value creation in December, the sub-sector would've only seen c. 34% growth YTD.
Below is the proposed composition of the 301020 sub-sector, from largest to smallest by market cap, having reviewed 250+ projects over the course of the past week from both the context-of-use and exchange accessibility perspectives:
$HYPE
A decentralised perpetual futures exchange with an order book model, also an L1, limited exchange availability, but so far unlimited hype
Market Cap: $8,029m
YTD: +269% (from 29/11/24)
$DYDX
A leading decentralised derivatives exchange specialising in perpetual contracts, clearly used to define this sub-sector, ETHDYDX migration is ongoing
Market Cap: $1,557m
YTD: +40%
$PENDLE
Tokenises and enables trading of future yield, effectively creating yield-based derivatives markets
Market Cap: $1,016m
YTD: +782%
$SNX
Provides synthetic assets and facilitates decentralised derivatives trading and a native exchange
Market Cap: $1,008m
YTD: -20%
$AEVO
A decentralised options and perpetual trading L2 protocol for crypto derivatives, merged with Ribbon Finance ($RBN)
Market Cap: $461m
YTD: +30% (from 13/03/24)
$GMX
A decentralised perpetual futures and spot exchange on Arbitrum and Avalanche
Market Cap: $377m
YTD: -27%
$DRIFT
A perpetual futures exchange on Solana, exploring prediction markets too
Market Cap: $349m
YTD: +503% (from 18/05/24)
$BLUE
Offers decentralised perpetual futures trading on Sui
Market Cap: $114m
YTD: +116% (from 12/12/24)
$APEX
Enables decentralised perpetual contracts trading with leverage and cross-chain compatibility
Market Cap: $95m
YTD: +576%
$OX
A perpetuals exchange focused on meme coins
Market Cap: $91m
YTD: +100% (from 26/03/24)
$F
A decentralised derivatives platform enabling futures trading on customisable assets on Base
Market Cap: $89m
YTD: -30% (from 06/12/24)
$GNS
Enables leveraged trading of synthetic derivatives
Market Cap: $82m
YTD: -51%
$PERP
Allows trading of perpetual futures contracts on Optimism
Market Cap: $77m
YTD: -7%
$FUL
A decentralised perpetual futures exchange on Cronos
Market Cap: $26m
YTD: +17%
$HEGIC
A decentralised protocol for trading peer-to-pool on Arbitrum
Market Cap: $22m
YTD: -30%
$CTX
Offers synthetic derivatives trading, builds indexes offering
Market Cap: $22m
YTD: +77%
$KWENTA - migrating into $SNX
A front-end for trading perpetual contracts on Synthetix, built on Base
Migrating into $SNX tokens, so a quick shout-out to them here before being excluded not to be double-accounted for moving forward as Synthentix Exchange
Market Cap: $18m
YTD: -71%
$ZEX
Provides options and futures trading on Solana
Market Cap: $17m
YTD: +93% (from 04/07/24)
$NUTS
A decentralised on-chain options protocol
Market Cap: $7m
YTD: -47% (from 21/05/24)
$DERI
Decentralised derivatives L3 protocol
Market Cap: $3m
YTD: +8%
Let us also explore what the composition of the sub-sector looks like as of today as we prepare for a longer-form analysis of the 2024 performance for this and the other DeFi sub-sectors in search of fundamental indicators of outperformance and underperformance alike.
There have been notable changes and movements since the start of this year, particularly for newcomers $PENDLE, $DRIFT and $APEX. $HYPE now comfortably maintains and extends its dominance of the sub-sector to arguably outgrow it altogether. Curious drop in value for $SNX and $GMX, long-standing players in the space, and a surprisingly underwhelming year for most others who have been around and trading since at least early 2023.
We will explore various possible reasons for such outcomes in the 2024 DeFi Report. Now, onto the next sub-sector classification, hopefully ready before Christmas – 301030 Decentralised Lending, which is the sole reason I got into researching DeFi back in Summer 2020 and technically never left.
Sources:
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