Pantera: Hyperliquid’s Onchain Perps Challenge Wall Street
Pantera Capital says Hyperliquid’s expansion of onchain perpetual futures into equities, commodities and indices could challenge Wall Street. Onchain perps are 14% of CEX perps; Hyperliquid holds about 40% of onchain volume.
Pantera Capital wrote on X on Wednesday that Hyperliquid’s push to offer onchain perpetual futures for equities, commodities and stock indices could pose a challenge to traditional markets. The asset manager reported that decentralized exchange perpetuals now equal about 14% of centralized exchange perpetuals volume, up from below 1% in early 2023.
Perpetual futures are derivative contracts without a fixed expiry. They use periodic funding payments to align contract prices with spot markets, allowing continuous trading and ongoing price discovery. Pantera highlighted features investors often cite for perpetuals: 24/7 trading, no contract expiries and simpler position management.
Pantera, an investor in Hyperliquid, said the protocol accounts for roughly 40% of onchain perpetual trading volume. DeFiLlama data show Hyperliquid ranked as the fourth-largest fee-generating protocol, producing about $13.5 million in weekly fees over the past seven days.
Hyperliquid was founded by Jeff Yan. The platform’s stated goal is to ‘house all of finance,’ and the firm has expanded offerings beyond cryptocurrencies to include stock indices, commodities and other tradable assets.
Traditional finance firms have outlined plans for tokenized securities and onchain trading. Intercontinental Exchange outlined proposals in January for a tokenized securities venue designed for 24/7 trading and onchain settlement. ICE CEO Jeffrey Sprecher urged regulators to create a ‘level playing field’ that would allow 24/7 onchain perpetual futures to launch.
Exchanges are forming product partnerships. OKX announced on May 22 plans to offer perpetual futures tied to ICE’s Brent crude and West Texas Intermediate benchmarks. The New York Stock Exchange partnered earlier this year with a tokenization platform to explore 24/7 blockchain-based stock trading and settlement.
Pantera framed Hyperliquid’s expansion as part of a broader trend of moving traditional assets and trading instruments onto blockchain infrastructure. Market participants and regulators are watching developments in tokenization, trading partnerships and proposals for continuous onchain trading and settlement.
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