The rise of perpetual futures in the cryptocurrency market has led to a shift in Ethereum's role, from being the primary platform for decentralized finance to becoming a settlement and collateral layer for high-performance trading applications. Ethereum's base layer was not designed to handle the high-frequency, low-latency transactions required for perpetual futures, leading to the growth of layer-2 networks like Arbitrum and Base. These networks have become increasingly attractive to traders due to their improved performance, growing user base, and liquidity. However, the fragmentation of liquidity across multiple ecosystems poses a challenge for Ethereum.
Despite this, many proponents argue that Ethereum's role is not to compete directly with faster chains but to provide a secure and trusted settlement layer, underpinned by its DeFi infrastructure. As institutions begin to take notice of onchain derivatives, the focus is shifting towards execution, custody, and predictability, with Ethereum's layer-2 ecosystem playing a crucial role in supporting the growth of perpetual futures. The division of labor between Ethereum and purpose-built chains like Solana and Hyperliquid may persist, with Ethereum focusing on settlement and collateralization, while others handle high-speed transactions.