The crypto perpetual futures market has experienced rapid growth, but Ethereum's base layer was not designed to handle the high-frequency trading required by perpetuals. As a result, layer-2 networks like Arbitrum and Base have become popular destinations for perpetual trading, offering faster block times and lower gas costs. This shift has led to a division of labor, with Ethereum focusing on settlement and collateral while other chains handle high-speed transactions.
Proponents argue that Ethereum's role is evolving rather than diminishing, as it provides the deepest and most trusted place to settle perpetual trades, underpinned by its layer-2 ecosystem and broader DeFi infrastructure.