Decentralized perpetuals exchanges are thriving as traders migrate away from centralized platforms, according to cryptocurrency researchers from Delphi Digital, a leading analytical firm. Analysts from Delphi Digital, who go by the pseudonyms @yeak__ and @NotSoAnonJoo on Twitter, highlighted four decentralized exchanges (DEXes) that should not be overlooked: DYdX, Synthetix, Vertex Protocol, and GMX.
The researchers believe that the perpetuals DEX market segment may gain significant momentum in the coming months. DYdX, in particular, is expected to experience a major catalyst when it transitions to a fully decentralized operational model. This transition will make the DYDX token crucial for securing the dYdX chain through staking. Additionally, dYdX token holders will benefit from a revenue-sharing mechanism, enhancing the token’s appeal to various types of investors.
The second iteration of the Synthetix protocol is also attracting attention due to its innovative and democratic design. The peer-to-pool model it employs is seen as sustainable for both traders and liquidity providers on a large scale. GMX, on the other hand, has recently released its protocol’s v2, positioning it as a serious contender among the market leaders.
While Vertex Protocol may not be as well-known as the other DEXes mentioned, it offers perks that make it appealing to perpetuals traders. These include a unified cross-margin and ultra-low latency operations. Despite concerns surrounding each of the four protocols, the Delphi Digital analysts believe they are benefiting from the collapse of centralized crypto platforms like FTX.
The rise in liquidity and soaring usage metrics imply that perpetuals DEXes hold promise, according to the report. As more traders flock to these decentralized platforms, the landscape of cryptocurrency trading continues to evolve. If this trend persists, centralized exchanges may face challenges in retaining their user base and market share.
It is clear that the allure of decentralized perpetuals exchanges lies in their ability to provide greater control, transparency, and security to traders. With ongoing developments and improvements in the DEX space, these platforms are poised to attract even more attention and reshape the cryptocurrency trading ecosystem.
As the industry continues to evolve, both centralized and decentralized platforms will play significant roles, catering to different segments of traders with varying needs and preferences. It remains to be seen how the competition between these exchanges will unfold in the future, but for now, decentralized perpetuals exchanges seem to be carving out a niche for themselves in the market.
