The Rise of On-chain Perpetual DEX: A New Era in Derivatives Trading

The on-chain derivatives market has entered a transformative phase, with decentralized perpetual DEXs (Perp DEXs) capturing a pivotal role in the $1.13 trillion trading volume recorded in 2025. This figure, a testament to the maturation of blockchain-based financial infrastructure, underscores a seismic shift in how traders access liquidity, manage risk, and interact with decentralized protocols. As institutional and retail participants increasingly prioritize transparency, efficiency, and composability, the Perp DEX ecosystem-led by platforms like Hyperliquid, Aster, Lighter, and EdgeX-has emerged as a cornerstone of the crypto derivatives landscape.

The Structural Dominance of Hyperliquid

Aster's Explosive Growth and Incentive-Driven Model

Aster has emerged as a disruptive force, achieving daily trading volumes exceeding $270 billion in select periods. Its rapid ascent, however, is shadowed by concerns over data manipulation and a low OI-to-volume ratio, suggesting much of its activity is driven by aggressive airdrop incentives rather than organic liquidity. While this model has attracted retail users and speculative capital, it raises questions about long-term sustainability. For Aster to transition from a volume-centric platform to a durable infrastructure provider, it must demonstrate the ability to convert short-term hype into lasting user retention and institutional trust.

Lighter's Zero-Fee Innovation and TVL Surge

Lighter's ZK-based architecture and zero-fee model have catalyzed a 481% surge in total value locked (TVL) over three months, positioning it as a compelling case study in user-centric design. By eliminating transaction costs, Lighter has democratized access to derivatives trading, particularly for smaller participants. However, its reliance on a fee-free model could strain revenue streams in the long term, necessitating a balance between user acquisition and sustainable monetization strategies.

EdgeX's Institutional Credibility and Revenue Generation

EdgeX, with its high-performance order books and institutional backing, has demonstrated robust revenue generation, earning $20.46 million in the 30 days preceding September 2025. This performance underscores its appeal to professional traders seeking low latency and deep liquidity. EdgeX's ability to integrate with traditional financial systems while maintaining decentralization principles positions it as a bridge between Web2 and Web3 markets.

Risks and the Path Forward

Despite the sector's explosive growth, investors must navigate significant risks. Token unlock events, governance centralization, and the sustainability of incentive-driven models remain critical challenges. Additionally, regulatory scrutiny of derivatives trading could introduce friction, particularly as on-chain activity blurs jurisdictional boundaries.

The $1.13 trillion on-chain derivatives market is not merely a statistical milestone-it represents a paradigm shift in financial infrastructure. For investors, the key lies in identifying protocols that balance innovation with durability, volume with liquidity, and growth with governance. Hyperliquid, Aster, Lighter, and EdgeX each offer unique value propositions, but their long-term success will depend on their ability to adapt to evolving market dynamics and regulatory frameworks.