How strong is the appeal of perpetual contracts? Just look at the current distribution of innovation activity in the crypto space. Credit, on-chain options, prediction markets—these are indeed iterating, but when it comes to earning capacity, perp still takes the lead.

To put it simply, the arbitrage logic of perpetual contracts is just too perfect—low friction, high leverage, and the ability to close positions at any time. This design is a deadly attraction for traders. In contrast, other innovative tracks face complex pricing issues with on-chain options, prediction markets need to gather popularity, and credit protocols depend on collateral quality... all of which seem less "plug-and-play."

The result is: as long as perp exists, no matter how fancy other product innovations are, they still pale in comparison in trading volume and user activity. That’s also why the main battleground for leading DEXs and exchanges remains in derivatives. The innovation opportunities in the crypto space still seem to lie in breaking the perp monopoly.