Bitcoin Traders Seek Deeper Perp Liquidity As On-Chain Volumes Hit New Highs

After two years of complete dominance, it finally seems like the crypto industry is ready to move on from meme coins and the meme coin meta. Whether or not this divorce is voluntary is a different matter entirely, of course. From all indications, the split is merely down to economic reasons following the events of the latest crypto crash earlier in the year. 

Bear markets are typically market-wide responses to the price movement of Bitcoin, the largest crypto token by market cap. According to CoinMarketCap data, Bitcoin has fallen by 24% in the past month as of the time of writing. This event has had a ripple effect across the broader market, with prominent tokens, such as Ethereum and Solana, also shaving off a significant percentage of their price. 

What is somewhat surprising, though, is the manner in which Bitcoin traders have reacted to the market trend. Onchain data suggests that Bitcoin traders have begun to rotate capital into less-risky crypto financial instruments like perps to avoid liquidation. 

Perps Open Interest Reach All-Time High As Bitcoin Traders Seek Hedge

As of the time of writing, Bitcoin’s price is approximately $71,000 per CoinMarketCap data. Merely six months ago, it was at an all-time high of $121,000. The statistics above do a good job of painting the current reality of Bitcoin holders and traders in the crypto market. 

A price slump of almost 30% is simply too great to ignore and is one of the main reasons why Bitcoin traders have begun to rotate their capital into other crypto alternatives. Perps have emerged as the alternative of choice among top traders, leading to an increase in activity on perp platforms and a surge in demand for liquidity. 

The reason is quite straightforward. Unlike other crypto financial instruments, perps carry a lesser degree of risk and, in some cases, offer opportunities to generate passive income. A good example of this phenomenon is the Perps trading platform HFDX, which offers users up to 15% interest on their total trading equity. 

HFDX Emerges As Likely Destination Due To Passive Income Opportunities

HFDX is a decentralized, non-custodial trading protocol offering on-chain perpetual futures and structured DeFi yield strategies powered by real protocol activity. The platform has been catapulted into mainstream crypto media consciousness thanks to the recent market downtrend in the crypto industry as an alternative that lets traders and investors keep profit margins high. 

One reason for this is the opportunity to generate passive income that it provides. As mentioned earlier, users can earn up to 15% yield on their total trading equity on HFDX, across all trading accounts and all native supported currencies. Furthermore, users remain one hundred percent in control of all their capital, reducing the risk of loss of funds due to breaches and exploits. 

But perhaps the biggest selling point for HFDX is that it is essentially a perpetual futures trading platform that lets you trade these instruments with leverage. The platform offers features such as its Liquidity Loan Note (LLN) strategies, which allow participants to allocate capital to protocol liquidity in return for pre-defined, fixed-rate returns over a stated term. 

Furthermore, there is no risk to using these features as they are backed and funded by actual protocol activity on the platform, such as trading fees and borrowing costs. It also stays true to the crypto ethos of complete decentralization by reducing its reliance on centralized market makers in favour of decentralized oracles. 

Make Your Money Work Smarter And Unlock A Wealth Of Opportunities With HFDX Today!

Website: https://hfdx.xyz/ 

Telegram: https://t.me/HFDXTrading 

X: https://x.com/HfdxProtocol