Perpetual futures are becoming the new financial standard
In his latest essay “Adapt or Die” Arthur Hayes describes how cryptocurrency-based perpetual futures are evolving into a product that is not only disrupting traditional finance but actively rewriting its core rules. What began as a niche innovation within the crypto ecosystem is quickly transforming into the dominant structure of modern global trading.
BitMEX set the foundation back in 2016
Hayes recalls how BitMEX introduced the first widely adopted perpetual futures contract in 2016. The idea was simple but revolutionary: a single contract, all liquidity concentrated in one place, and the ability to offer high leverage to retail traders.
This model removed the complexity of quarterlies and expiration dates. One instrument could replace an entire chain of contracts while maintaining close price tracking with the spot market.
Simplicity is what attracted traders worldwide
Perpetual futures mirrored spot price movements, making them easier to understand and trade. There was no need to manage rollover dates or calculate forward curves. Traders could express long or short views using a single, continuous instrument.
This simplicity made perpetuals far more attractive to retail participants compared to traditional futures products.
Why traditional exchanges can’t compete on equal terms
According to Hayes, legacy exchanges are structurally limited. Clearinghouses are legally required to guarantee settlements, which forces them to restrict leverage and limit access for smaller traders.
Because of this, traditional finance is unable to offer a product that matches the efficiency, leverage, and global accessibility of crypto perpetual futures.
Institutions are adapting as policy shifts
With a new political environment in the United States making crypto market infrastructure more acceptable for major financial players, traditional exchanges are beginning to follow the crypto model.
Both SGX and CBOE are preparing to launch their own versions of perpetual futures, signaling that the product has moved from fringe to mainstream.
Hyperliquid is already merging TradFi and crypto markets
On Hyperliquid, the HIP-3 upgrade has enabled trading of a perpetual futures contract tied to the Nasdaq 100. Daily volume has already surpassed $100 million, highlighting growing demand for these hybrid instruments.
This represents the first real step toward crypto-native platforms becoming the primary venue for trading traditional market exposure.
By 2026, price discovery may shift to crypto exchanges
Hayes predicts that by the end of 2026, key price discovery for indices like the S&P 500 and Nasdaq 100 will take place on crypto exchanges rather than on the CME.
Perpetual futures are on track to become the most widely traded derivative in the world, across both centralized and decentralized platforms.
Those who refuse to adapt to this new structure, Hayes argues, will simply be left behind.
