0 order fees and transaction fee discounts, trading volume can earn points to redeem tokens.
Written by: 1912212.eth, Foresight News
The rumors have come true; recently, Arkham officially announced the launch of its derivatives trading platform and opened for registration. With favorable conditions from the upcoming elections, the ARKM token performed well, achieving three consecutive daily increases from around $1.6, peaking at around $2.36.
Why did one of the former leaders in AI concepts personally enter the perpetual contract market?
Arkham systematically analyzes and de-anonymizes blockchain transactions using an AI algorithm engine called Ultra. It provides a comprehensive view of the activities of entities or addresses, including transaction history, holdings, balance history, profit and loss situation, exchange usage, and top counterparties. Through Profiler, users can obtain comprehensive information about entity activities and use it for deeper analysis and insights. Over the past year, Arkham has been in the spotlight for its reporting on the German government's sell-off crisis, compensation in Mentougou, tracking US government addresses, and some whale activities.
In addition, it is worth mentioning that due to its investors including leading figures in the current AI field, such as OpenAI founder Altman, it often experiences significant price increases during the hot narrative of AI, becoming one of the popular tokens in the AI concept.
However, in early April of this year, Arkham sparked significant controversy due to its massive token unlock, with critics claiming that it did not unlock tokens according to the requirements. Arkham responded by stating that rumors were spread by competitors, and that the related token transfers were all unlocked tokens and reasonably arranged. After this storm subsided, as the market began to turn bearish, its token price also entered a downward trend.
So why did Arkham enter the derivatives market at this time?
DeFi derivatives market
The derivatives market has always been regarded as a high ceiling, high-profit DeFi market. As of the end of last month, Bitcoin's daily spot trading volume was approximately $4 billion, while its derivatives trading volume exceeded $50 billion.
However, the total trading volume of DeFi derivatives has not yet surpassed DEX spot trading, and its share compared to CEX seems relatively small.
The reasons include adverse factors such as a bear market, user experience, legal regulations, etc. However, new players can still enter and gain a foothold, such as Hyperliquid, which was once quite popular in the English-speaking circle as a Perp DEX.
On one hand, it continuously attracts trading volume through its points program, airdropping 50% of its total amount to point holders proportionally; on the other hand, it is constantly building its L1, optimizing in terms of throughput and user experience. Additionally, its market operations are commendable, such as responding relatively quickly to new and popular cryptocurrencies being listed, bringing significant heat and trading volume.
According to DefiLlama data, its total TVL has approached $1 billion, while at the beginning of the year, this figure was only $57 million.
Arkham's launch of its new derivatives market seems timely. The market has confirmed entry into a new bull market, with the Federal Reserve continuously lowering interest rates, and the newly appointed Trump relaxing regulations, among other favorable factors. The future growth potential of the DeFi derivatives market is worth looking forward to.
AI + big data tracking for trading support
Data serves as trading reference information, and no emphasis is too much. Arkham, leveraging big data support, is naturally suitable for various whales and traders to conduct spot and derivatives trading on its platform.
Arkham has tracked many whales' related movements, such as trading records, holding cryptocurrencies, and balance information. After big data cleansing and screening for success rates, it is naturally suitable as a reference for trading signals.
In terms of market trend warnings, the movements of certain large institutions and governments are often of great concern to the market. For instance, if a certain government begins a large sell-off or a venture capital firm liquidates its assets, such valuable information can trigger certain trades.
Users can execute trading actions seamlessly while surrounding this information.
Information data support is just one aspect; what other tricks does Arkham have to attract users?
Transaction fee reduction, trading volume earns points redeemable for tokens
According to its official tweets, Arkham exchange currently implements 0 order fees for spot and perpetual contracts. Based on users' ARKM balance and trading volume within the exchange, traders can enjoy up to a 95% discount on transaction fees. If users choose to pay with their current balance of ARKM, they can receive an additional 25% discount.
In addition to open registration, Arkham announced a points program to attract new users to trade. Users can earn points based on their trading volume on the Arkham exchange. VIPs who open exchange accounts can also receive a 10% boost in points.
Points can be redeemed for ARKM tokens 30 days after the exchange officially launches trading. Arkham will officially launch trading functions within a week.
Token empowerment
The utility of the ARKM token itself is limited, aside from community governance voting, another function is that users can use ARKM to exchange information, such as address labels, hacker tracking, and planning data sources. The extent to which these two functions contribute to the token's price increase remains questionable.
Its CEO Miguel Morel has stated that he hopes the main pillars of Arkham will be free, allowing people to always view entities, conduct searches, and check people's portfolios, among other things. However, he expects that paid features will begin to be offered later this year for monetization.
In this way, token holders will receive their share of the fees.
Although there has not yet been any official news regarding this paid feature, the new perpetual contract exchange is deeply tied to ARKM. If the exchange can achieve decent growth, it will produce a positive feedback loop on its token price.
Summary
The derivatives market is indeed vast, but gaining a foothold is not easy. Arkham's new perpetual contract exchange plays a certain role in token empowerment, but the derivatives market presents significant challenges in market operations, listing long-tail tokens, and liquidity depth. Under token rewards, its trading volume is expected to continuously rise, but how it performs afterward will be the key to successfully expanding its boundaries.
