For years, Ethereum was the hub of decentralized finance, but the rise of perpetual futures has led to a shift in its role. Perpetual futures require fast, low-cost, and high-frequency trading, which Ethereum's base layer was not designed to handle. As a result, layer-2 networks like Arbitrum and Base have become the go-to destinations for perpetual trading, offering faster block times and lower gas costs. While Solana and Hyperliquid have also gained popularity for their high-performance trading infrastructure, Ethereum's layer-2 ecosystem has become a compromise, preserving Ethereum's security while improving trading performance.
The distinction between Ethereum's role and that of other chains has become increasingly important as decentralized perpetual exchanges mature and attract institutional attention. Ethereum's strength now lies in supporting the layer-2 networks and providing a settlement and collateral layer for the broader DeFi ecosystem.