Coinbase researcher David Duong stated on December 30th that on-chain perpetual contracts were one of the most crucial and structurally significant changes of the past year. Furthermore, in 2025, crypto derivatives activity clearly rebounded, with this growth driven by decentralized, on-chain perpetual contract platforms, indicating that the core of the crypto derivatives market is shifting.
Derivatives Trading Volume Rebounds in 2025, Perpetual Contract Monthly Trading Volume Exceeds $1 Trillion
Duong pointed out that crypto derivatives trading activity surged in 2025. By the end of the year, decentralized exchanges (DEXs) were processing over $1 trillion in monthly on-chain perpetual contract trading volume, becoming the primary source of growth in the entire derivatives market.
He stated that this trend reflects not just a short-term speculative frenzy, but a changing market structure. It can be seen from the figure below:
"Beginning in the second half of 2025, the weekly trading volume of on-chain perpetual contract DEX has rapidly expanded, reaching a maximum of nearly 350 billion U.S. dollars. Calculated at the peak period, it exceeded 1 trillion U.S. dollars in a single month, showing that perpetual contracts are transforming from highly leveraged instruments to the core trading infrastructure of the DeFi market."
No altcoin season in 2025, traders turn to leveraged tools
Duong pointed out that the market in 2025 did not have the typical "altcoin season" in the past, and the spot market returns were limited, causing traders to look for other ways to improve capital efficiency. In this context, the high leverage provided by perpetual contracts has become an important tool for traders to enlarge their positions and pursue returns.
He described perpetual contract platforms as offering an "unprecedented level of leverage," allowing traders to achieve greater price exposure with relatively small amounts of capital.
Decentralized platforms are taking the lead, with Aster and Hyperliquid driving trading volume.
Coinbase points out that this surge in trading volume is almost entirely driven by decentralized perpetual contract platforms. Duong specifically names on-chain exchanges like Aster and Hyperliquid as the main contributors to on-chain perpetual contract trading volume, indicating a shift in market focus from centralized platforms to on-chain transactions.
In Coinbase's 2026 outlook, perpetual contracts are positioned as an "evolving financial infrastructure." Duong stated that these products are no longer just isolated high-leverage trading tools, but are gradually becoming composable and integrateable core modules in the DeFi market.
Equity perpetual contracts: the next potential growth area
Looking ahead, Duong pointed out that equity perpetual contracts may become the next growth focus. He believes that if tokenized equity derivatives can be combined with the 24/7 trading and leverage mechanisms of the crypto market, they will have the potential to meet investors' needs for exposure to large-cap US stocks outside of traditional trading hours.
(Coinbase Outlook for 2026: Crypto Markets Move Away from Speculation-Driven Growth, Institutionalization Accelerates Significantly)
This article, Coinbase Outlook for 2026: On-Chain Derivatives Trading Volume Rebounds, Equity Perpetual Contracts Become the Next Focus, first appeared on ChainNews ABMedia.
