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In this article, we’ll explore DeFi derivative protocols based on our latest Perspective dashboard. Our analysis offers a granular look at the tokens powering these platforms, highlighting their performance, market dynamics, and underlying trends.
What are derivatives protocols?
Derivative protocols in decentralized finance (DeFi) are platforms that enable the creation and trading of derivatives, which are financial contracts deriving their value from an underlying asset. These protocols leverage blockchain technology to provide a trustless, transparent, and permissionless environment for engaging in complex financial instruments such as futures, options, and swaps.
Derivatives protocols — The On-chain picture
The biggest movers
Synthetix currently leads in the derivatives space, with a market cap of approximately $1.19 billion, more than twice as much as GMX. Despite its impressive dominance, its price barely moved in the last 30 days, marking a minor decrease of 0.9%.
In contrast, GMX had the strongest price movement this month, with a decrease of almost 20%. The biggest positive mover was Ribbon Finance, with a price increase of around 13%.
GMX, the sleeping giant?
Despite its recent price dip, GMX’s robust market cap of $420 million and the highest monthly token volume of $135.7 million underscore its liquidity and active trader engagement. With nearly 300k token holders — triple that of Synthetix — GMX’s popularity is undeniable. Furthermore, its impressive annualized monthly protocol revenue of $47.86 million signals strong investor confidence and protocol sustainability.
Emerging Contenders: ApeX
ApeX, although smaller with a $100 million market cap, has shown remarkable growth, with its price steadily climbing and holder count increasing from around 300 to 675. Despite being overshadowed by giants like GMX and SNX, ApeX ranks third in trading volume, boasting over $220 million this week, highlighting its emerging significance in the derivatives space.
Derivatives protocol Volume Insights
In terms of protocol trading volume, a couple of interesting things stand out. DyDX has dominated trading volume for a long time, frequently reaching more than ~1 Billion per week. However, the volume seems to have decreased somewhat in recent weeks and currently sits around $500 million.
Vertex protocol takes the notable second spot in terms of trading volume, reaching around 345 million volume weekly on average since the beginning of the year. This is quite impressive, considering the VRTX token only has a $42 million market cap and just over 3000 holders, both amongst the lowest numbers of derivatives protocol tokens.
Total Value Locked (TVL) Leadership
Last but not least, we’ll explore the total value locked (TVL) numbers in derivatives protocols. Synthetix stands out here, with over $700M TVL. The second spot is reserved for GMX, with just over $680M in TVL.
Dive Deeper with Our Perspectives
This article is based on our most recent Perspectives release on derivatives protocols. Would you like to explore these insights in more detail, or find your own? You can find the latest perspective here. Happy exploring.
An On-Chain Exploration of DeFi Derivatives Protocols was originally published in IntoTheBlock on Medium, where people are continuing the conversation by highlighting and responding to this story.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.