Analyzing the growth potential of derivatives DEX and focusing on the new DEX option for perpetual contracts - SphereX

Looking back at the bull market in 2021, the DeFi track led the market. It is worth noting that DeFi has already emerged in 2020 - lending mining in the first half of the year and transaction mining in the middle of the year were all the rage.
Reasoning according to this historical pattern, in the upcoming new round of bull market, derivatives DEX is likely to become one of the tracks worthy of close attention.
➤ Derivatives DEX❚ The potential of derivatives DEXAccording to the data collected by coinmarketcap:
There are 500 spot DEXs in the market, which is about twice the number of spot CEXs.
However, there are only 16 derivatives DEXs, less than one-sixth of derivatives CEXs.
In the past 24 hours, derivatives trading volume in CEX exceeded spot trading volume by 7 times.
However, in DEX, derivatives trading volume barely matches spot trading volume.
The second set of data is:
Excluding USDT and USDC, the total market value of cryptocurrencies reached an all-time high of $2.81 trillion in November 2021. In March 2024, the total market value of cryptocurrencies was close to its all-time high, but it was only 78% of that in November 2021 (about $2.2 trillion).
However, data from Deflama shows that the TVL of the derivatives category reached an all-time high ($3.85 billion) at the end of July 2024, 1.25 times the peak in 2021 ($3.074 billion).
After April 2024, the price of the currency will enter a falling phase. However, the TVL of derivative products will enter an upward trend.
After comparing the two groups, we will find that the derivatives DEX market is continuing to grow, and derivatives DEX may still be in a blue ocean market.
❚ The need for derivatives DEXCurrently, the scale of spot DEX is larger, while the market of derivatives DEX is relatively smaller. This is not because derivatives traders prefer CEX.
It is a common phenomenon that futures contract trading in CEX is spiked. This phenomenon may be due to large-scale capital manipulation by market makers or data manipulation by exchanges. Due to the centralization and lack of transparency of CEX, we cannot confirm which reason is the cause.
But no matter what the reason is, the impact of "spiking" on spot trading is relatively small, but for contract trading, the damage of "spiking" is greater, especially for high leverage, "spiking" can be said to be fatal.
It can be seen that futures contract traders should prefer to use derivatives DEX. Especially for enthusiasts of high-leverage trading, derivatives DEX may be a rigid demand.
➤SphereX❚ Features of SphereXSphereX is a perpetual contract DEX that will be launched in 2024. Its features include:
1. Order book DEX. Non-AMM DEX, no market makers are needed to add liquidity. Traders do not need to face transaction slippage or pay fees to market makers.
2. Off-chain matching and on-chain settlement. Using the off-chain matching and on-chain settlement method, the perpetual contract trading experience is almost the same as CEX.
3. Low fees. According to the white paper, SphereX offers a handling fee rate of 0.02% to 0.05%, which should be the lowest fee range among current derivatives DEXs.
4. Multi-chain. SphereX supports multi-chain. The test network is connected to the Ethereum main network, Blast, opBNB, zkLink and Base test chain. After the main network is launched, more networks will be gradually supported.
5. Gamification. The launch of lucky roulette and betting games provides users with new ways to play and opportunities to win rewards.
6. Community empowerment. When the platform makes decisions on new features, new functions, mainnet deployment, etc., the SphereX community holds 51% of the voting rights, so it has a strong influence on the development of the platform. When community members agree, they can lead the development of the platform.
7. MEME products. In the face of the booming MEME market, SphereX has expanded its product positioning to MEME token perpetual contracts, providing opportunities for short selling and leveraged trading of MEME coins.
❚ SphereX development stagesRecently, SphereX, a derivatives DEX with perpetual contract products as its core, has just announced the completion of the testnet phase. With the mainnet launch imminent, SphereX has launched a series of new features.
1. Points system. Users can earn points by trading, participating in platform activities, etc. Points can be exchanged for SphereX platform token $HERE in the future.
2. Games. When introducing the features of SphereX, we mentioned the newly launched lucky roulette and betting games.
3. Atlas Collection NFT. From 2024-08-15 to 2024-08-29, SphereX launched the Atlas Collection NFT for a limited time. This is the key to participate in the platform's past and future events and receive rewards; holding Atlas Collection NFT can also get more event discounts in the future.
During the Blast testing phase, many users participated in SphereX’s testnet. According to media reports, during the testnet phase, “SphereX processed more than 300,000 transactions with a total transaction volume of more than $150 million. The platform also attracted 45,000 users.”
❚ Background of SphereXOn the one hand, SphereX's first round of financing was led by Fundamental Labs:

On the other hand, SphereX has joined #chainlink's BUILD program and become a member of the Chainlink ecosystem. As a perpetual contract DEX, SphereX needs to use an oracle to calculate the price of the original asset. The Chainlink technology and ecological alliance will help SphereX build a more transparent and healthier perpetual contract trading ecosystem.
➤Written at the endMany investors believe that this bull market lacks innovation, but this may not be the case. Innovation is happening quietly. Looking back at the tracks that broke out in the 2021 bull market, we will find that most of them have already begun to show signs in 2020.
Derivatives DEX (decentralized futures contract trading platform) represented by DYDX and GMX were once all the rage. This track is likely to rise again after the macroeconomic environment becomes more relaxed.
In this potential track, SphereX, as a new participant, provides users with new choices.
SphereX and DYDX belong to the order book derivative DEX sub-track and have the same advantages - the compatibility of CEX and DEX: low fees, user-friendly trading experience, similar to CEX; while maintaining the security of DEX.
However, SphereX has three unique integrations compared to DYDX:
First, space integration. SphereX supports multi-chain operations, which helps integrate more on-chain funds and users. The close relationship with Chainlink is conducive to SphereX's traffic. Multi-chain, oracle technology and ecological alliances jointly lay the foundation for SphereX to form a new perpetual contract scale transaction.
Second, community integration. SphereX pays special attention to MEME products, Degen culture and community users. On the one hand, it targets the vibrant downstream market, actively attracts MEME coin enthusiasts and expands the user base; on the other hand, in terms of governance structure, it gives the community 51% of the voting rights. This community model is conducive to building an active perpetual contract trader community and promoting the construction of a community-driven platform.
Third, demand integration. In addition to the gamification design, SphereX is about to launch MEME coin perpetual contract trading, which meets the market demand for more diversified trading strategies for MEME coins and enhances the flexibility and potential benefits of MEME enthusiasts' transactions.
Through these three integrations, SphereX may bring new possibilities to the derivatives DEX and DeFi markets through multi-chain integration, promotion of community-driven and MEME coin perpetual contract ecology.