The year 2024 witnessed a groundbreaking surge in the crypto derivatives market, particularly in perpetual futures trading. CoinGecko’s recent report revealed that the total trading volume on the top 10 centralized perpetual exchanges skyrocketed to an astonishing $58.5 trillion, doubling from $28 trillion in the previous year.
This surge in trading volume signifies the growing popularity of perpetual futures contracts, which allow traders to maintain positions indefinitely without set expiration dates. However, despite this exponential market growth, Binance, the dominant player in the perpetuals sector, experienced a decline in its market share from 43% in January to 34% by December.
Binance’s diminishing grip on the perpetuals market was evident throughout 2024 as it faced stiff competition from other centralized exchanges like Bybit, OKX, and Bitget. Although Binance’s total trading volume increased over the year, its market share steadily declined, reaching 34% in December. This decline marked a significant drop from the 43% dominance it held at the beginning of the year.
One noteworthy development in the market was the emergence of Coinbase International, which entered the top 10 list for the first time after experiencing a remarkable fourfold increase in trading volume. This shift in trader preferences indicates the growing traction of newer and more competitive platforms challenging established giants like Binance.
The competition extended beyond centralized exchanges, as decentralized perpetual exchanges also witnessed substantial growth in 2024. Total trading volumes in the decentralized sector reached $1.5 trillion, marking a 138.1% increase from the previous year. Hyperliquid (HYPE) emerged as a standout performer, capturing over 55% of DEX perpetual trading volumes by Q4, peaking at 66% in December.
In contrast, dYdX, the former market leader, experienced a sharp decline in market share, plummeting from 73% in January 2023 to just 7% by December 2024. Additionally, Jupiter, built on the Solana blockchain, emerged as the second-largest decentralized perpetual exchange, with Solana accounting for 15% of the total decentralized trading volume.
Bitcoin maintained its position as the primary asset for perpetual trading in 2024, representing around 45% of open interest on the top 10 centralized exchanges. Open interest across these exchanges surpassed the $100 billion mark for the first time on November 22, 2024, sustained throughout the year due to bullish sentiment following the U.S. presidential elections.
The Solana blockchain also experienced a surge in trading volume, driven by celebrity meme coin launches. Looking ahead to 2025, the year started on a bullish note but has since faced challenges due to economic reforms. However, industry leaders and analysts remain optimistic about the potential for a bullish year in crypto, driven by favorable regulations under the current pro-crypto administration.
In conclusion, the crypto perpetuals market witnessed unprecedented growth in 2024, with Binance’s market share declining amidst increasing competition. The rise of decentralized exchanges and the dominance of Bitcoin in open interest reflect the dynamic nature of the crypto derivatives landscape, setting the stage for a potentially bullish year ahead.