Perpetual DEXs volume hit $70B after Bitcoin’s steep decline

Key Insights

• Perpetual DEXs recorded their second-highest daily volume of $70 billion on February 6, while Bitcoin crashed.
• Hyperliquid saw $24 billion in trading volume, with the top 4 perp DEXs accounting for 66% of activity.
• The crypto market sees signs of recovery with Bitcoin above $70,000, but sentiment remains Extreme Fear.

Perpetual DEXs’ trading volume soared to $70 billion on January 5. The surge came as Bitcoin’s value crashed, amplifying market volatility. This is the second-highest volume by the Perps DEXs, surpassed only by the October 10 crypto flash crash.

The surge in trading volume hit during Thursday’s volatility. Bitcoin dropped sharply to $60,000. The market reacted with heightened uncertainty.

Hyperliquid Leads as Top 4 Perpetual DEXs Control 66% of Volume

Volatility triggered a massive price crash across cryptocurrencies. Several tokens hit their lowest levels in over a year. At the same time, it sparked a frenzy for Perps DEXs. This represents a surge in speculative activity during the period as spot activity declined.

The massive volume highlights the growth of Perps DEXs in the past few years. These DEXs have been around for some time. However, they did not gain prominence until 2024, when Hyperliquid saw increased activity.

According to DefiLlama, Hyperliquid led in volume with the Perpetual DEX recording $24.7 billion in activity. This represented a 90% increase in daily volume and accounts for 32.2% of total trading volume.

Hyperliquid has now recorded $248.06 billion in trading volume over the past 30 days. Out of this, $99 billion came in just the last 7 days.

Meanwhile, Binance-backed Aster followed with $10.13 billion in volume, bringing its seven-day total to $45.86 billion. The DEX has also recorded $145 billion in trading volume in the past 30 days.

The two other major Perpetual DEXs, edgeX and Lighter, had $8.67 billion and $7.53 billion, respectively. Combined, the four DEXs account for 66.5% of total market volume.

However, Defillama data shows that there are around 20 Perps DEX in total, with varying volumes. SYMMIO had only $301 million while Gate Perp DEX recorded $337 million.

Interestingly, the surge in trading volume did not come only from crypto perps. Some DEXs, including Hyperliquid, now list perps for commodities like gold, silver, and copper. This expansion further drives trading volume across the platforms.

Crypto Market Sees Signs of Recovery with Bitcoin Back at $70,000

Meanwhile, the crypto market looks to have briefly recovered after its recent meltdown, with Bitcoin now back at  $70,000. Bitcoin plunged from over $80,000 at the end of January to $60,000 by February 5. In the past 24 hours, the flagship asset rebounded with an 11% gain.

According to CoinMarketCap, it is currently trading above $70,000 and has dragged the rest of the market with it. ETH also gained 12% while XRP, SOL, DOGE, and ZEC equally recorded double-digit gains.

However, all the assets remain very much underwater this year, with market sentiments strongly negative. CoinMarketCap’s Crypto Fear and Greed Index sits at 5, marking Extreme Fear. This is the lowest reading since August 2023, when the index first began tracking sentiment.

Interestingly, the only token that has seen little gain today is Hyperliquid. It is currently trading at $33, down slightly over the past 24 hours. However, it is the best-performing major-cap token year-to-date, with a 36% gain.

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