Decentralized exchanges surpass $1 trillion monthly volume as volatility spikes

Perpetual decentralized exchanges (perp DEXes) recorded $1.049 trillion in monthly volume as of October 24, marking the first time on-chain derivatives crossed the $1 trillion threshold. This surge followed a massive liquidation event on October 10-11, triggered by President Trump's announcement of a 100% tariff on Chinese imports, which caused an estimated $19 billion to $30 billion in liquidations across centralized and decentralized venues. Despite the volatility, perp DEXes largely functioned as intended, processing liquidations without downtime, unlike some centralized exchanges. Sustained activity was also fueled by ongoing user incentives like points programs and airdrop farming for tokenless DEXs, boosting platforms like Lighter and Aster. Hyperliquid remains the market leader with 25.5% market share. The event demonstrated that decentralized derivatives can operate at a scale rivaling centralized segments, but it also highlighted systemic risks related to oracle feeds and increased regulatory scrutiny over high leverage and lack of KYC.

(Source：CryptoSlate)