The crypto perpetual futures market has experienced significant growth, but Ethereum's mainnet has struggled to keep up with the demand for fast and low-cost transactions. As a result, layer-2 networks such as Arbitrum and Base have become the primary destinations for perpetual futures trading. These networks have reduced block times and improved trading performance, making them attractive to traders and liquidity providers.
Meanwhile, Ethereum's mainnet has focused on providing a secure settlement layer, with its layer-2 ecosystem serving as a compromise between security and trading performance. Other blockchain platforms, such as Solana and Hyperliquid, have also gained traction in the perpetual futures market due to their low fees and high-performance capabilities. Despite the challenges it faces, Ethereum's role in the market is evolving, with its layer-2 ecosystem and DeFi infrastructure providing a foundation for broader capital markets.
As institutions begin to take notice of onchain derivatives, the focus is shifting from whether decentralized perpetuals can work to whether they can compete with traditional infrastructure. To remain competitive, Ethereum will need to address issues such as fragmented liquidity, interoperability, and user experience.