Introduction
On-chain perpetual contracts have become a vital component of the decentralized finance (DeFi) ecosystem, enabling traders to speculate on asset prices without an expiration date. These contracts not only offer high leverage and hedging opportunities but also attract increasing market attention. In 2025, leading projects like Hyperliquid, dYdX, GMX, Drift, and SynFutures are driving explosive growth in the on-chain perpetual contracts market. CZ’s recent test of the Mubarak perpetual contract on APX Finance has sparked renewed market interest, offering fresh insights into the sector’s evolution.
Current State and Performance of Perpetual Contracts (CEX)
The perpetual contracts market has shown robust growth in trading volume and open interest, fueled by shifting listing strategies on centralized exchanges (CEX). This trend has expanded opportunities for on-chain perpetual contracts while educating users early. Key data highlights:
- VINE’s trading volume surged to $1.6 billion within 24 hours after its Binance Futures listing in January 2025.
- According to Coinbase International’s report, AI meme coins like Turbo and GOAT accounted for 60% of trading volume, reflecting strong demand for high-volatility products.
- Leverage offerings range up to 200x on MEXC and 125x on Binance Futures, catering to risk-tolerant traders.
- Risks remain stark—for instance, GOAT’s price once plummeted 50% in a day, underscoring liquidation risks under high leverage.
These trends suggest that on-chain perpetual contracts are entering a pivotal growth phase, driven by diversified user demand and adaptive CEX strategies.
CZ’s Mubarak Perpetual Contract Test
On March 24, 2025, CZ opened a 0.04 BNB position with 24.7x leverage on APX Finance to test the Mubarak perpetual contract, focusing on MEV (Miner Extractable Value) issues. During the test, APX tokens rose 26%, while Mubarak gained 5.5%, drawing significant market attention:
- The test highlighted perpetual contracts’ potential for meme coins, signaling innovative designs as viable trading tools in volatile markets.
- Positive market reactions underscored investor interest in on-chain perpetual products, particularly for meme tokens, which often gain traction during decentralized trading phases.
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APX Finance Overview
APX Finance is a decentralized exchange specializing in on-chain perpetual contracts. Its V2 version supports meme coins like Mubarak, gaining traction after CZ’s test.
Key Features:
- V1: Order book model with off-chain matching and on-chain settlement, offering 100x leverage. Fees: 0.02% (Maker) and 0.07% (Taker).
- V2: Fully on-chain perpetual contracts with an AP liquidity pool, enabling 250x leverage (Classic Mode) or 1001x (Degen Mode). Dual oracles (Binance and Chainlink) ensure price accuracy.
- AP Pool: Initial price of $1, with users earning Fee APY. Pool value fluctuates based on trading activity.
- DEX Engine: Third parties can build DEXs using APX’s framework, with revenue sharing—10% to APX DAO, 40% to the AP Pool, and 10%-30% to partners.
On-Chain Perpetual Contracts Sector Analysis
The sector is led by several major projects, each with distinct strengths:
- Hyperliquid: Achieves $4.6 billion daily volume and $2.91 billion open interest with its on-chain order book, zero-gas fees, and high-throughput proprietary chain.
- dYdX: A pioneer using an order book model and a Cosmos-based chain, catering to professional traders with $366 million daily volume.
- GMX: Offers multi-asset liquidity pools and up to 100x leverage on Arbitrum and Avalanche, appealing to high-risk traders.
- Drift and SynFutures: Hybrid models and on-chain matching engines on Solana and Base, respectively, serve diverse market needs.
The sector is rapidly evolving, with projects addressing demand for low-cost, high-leverage, and transparent trading.
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Future Outlook
The on-chain perpetual contracts market is poised for sustained growth, driven by:
- Enhanced Blockchain Scalability: Improvements in cross-chain interoperability and oracle technology will boost efficiency and stability.
- User Experience: Lower fees, faster transactions, and intuitive interfaces will attract more traders.
- Regulatory Clarity: Proactive engagement with regulators aims to foster compliant innovation, ensuring long-term stability.
Investors should remain cautious of risks like high-leverage liquidations and monitor macroeconomic and regulatory shifts.
Conclusion
CZ’s test has spotlighted the potential of on-chain perpetual contracts, especially for meme coins. With Hyperliquid, dYdX, GMX, Drift, and SynFutures leading innovation, the sector is set to expand further. As DeFi evolves, these tools will contribute to a more efficient, transparent, and secure crypto ecosystem, offering global traders unprecedented opportunities.
FAQs
Q: What are on-chain perpetual contracts?
A: They are decentralized derivatives allowing traders to speculate on asset prices indefinitely, without expiry dates.
Q: Why did CZ’s test attract attention?
A: It demonstrated perpetual contracts’ viability for meme coins, sparking interest in high-volatility trading tools.
Q: Which platforms lead the on-chain perpetual contracts sector?
A: Hyperliquid, dYdX, GMX, Drift, and SynFutures are key players, each offering unique features.
Q: What risks are associated with perpetual contracts?
A: High leverage can lead to rapid liquidations, especially in volatile markets. Risk management is crucial.
Q: How does APX Finance’s V2 differ from V1?
A: V2 supports fully on-chain trading with higher leverage (up to 1001x) and uses dual oracles for price accuracy.
Q: What drives growth in this sector?
A: Scalability improvements, better UX, and regulatory progress are key catalysts.