2026-01-18 16:27:21

2026 On-Chain Derivatives New Landscape Observation

Looking back at 2025, the crypto market experienced an invisible upheaval—the price fluctuations took a backseat, and the real protagonist was the structural shift in the trading ecosystem.

Data highlights this trend: the on-chain perpetual contract market has become a new hub of activity over the past year. An increasing number of traders are adjusting their strategies, migrating high-frequency swing trading to on-chain derivatives platforms. The logic behind this is clear—transparency, real-time settlement, and self-custody in on-chain trading have become essential for traders seeking efficiency and risk management.

2026 has entered a new phase of competition. From centralized exchanges to on-chain DEXs, from spot trading to derivatives, the boundaries of the ecosystem are being redefined. On-chain derivatives protocols that offer deep liquidity, low slippage, and fast execution are attracting more and more trading groups who prioritize operational experience.

Swing traders are especially sensitive. They need quick response times, cost efficiency, and controllable risk—precisely the focus of current on-chain derivatives protocol competition. The market is pushing product iteration, traders are voting with their feet, and the ecosystem is accelerating its evolution.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

9 Likes

Reward
9
4
Repost
Share

Comment

0/400

RunWithRugs

· 5h ago

Honestly, the current on-chain contracts are indeed taking business away from CEXs. With less slippage and higher transparency, how can they not migrate upward? --- This round of DEX derivatives is gaining momentum, and the swing traders have already sniffed out the trend. --- The self-custody approach sounds appealing; it all depends on whether protocols can truly accumulate liquidity. --- By 2026, it will be about who can make the user experience the smoothest. Even a slight difference in slippage can determine life or death. --- I've said it before: on-chain is the future. The CEX model is gradually decaying. --- Fast response times and low costs—aren't these what we want? Naturally, the market is coming. --- Voting with your feet is correct; no matter how much funding you raise, if the product isn't good, it's all pointless. --- Is depth sufficient? No one wants to get stuck during high volatility periods.

View OriginalReply0

blockBoy

· 5h ago

Really? On-chain derivatives are so popular now? Why am I still using centralized exchanges... I need to think about how to migrate.

View OriginalReply0

BridgeNomad

· 5h ago

nah, liquidity fragmentation across these protocols is gonna be the real killer tho... watched enough bridge exploits to know trust assumptions break when tvl gets too scattered lmao

Reply0

NotAFinancialAdvice

· 5h ago

Really, on-chain derivatives have truly taken off this time, and swing traders are all fleeing --- Low slippage is the key, the centralized approach should have been eliminated long ago --- Self-custody is the best, but I'm worried about protocol bugs... --- Liquidity depth is still an issue, need to take another look --- I agree with the market forcing iteration, but real implementation will take some time --- More and more traders are paying attention to user experience, and that's true --- The competition in perpetual contracts has indeed become fierce --- Protocols with faster response times get a bigger share of the pie, others are cooling off --- If derivatives haven't gained significant volume by 2026, then it's really over --- Is risk controllable? Ha, leverage is always a double-edged sword

View OriginalReply0