The fast-moving pace of the crypto industry means that each year/cycle is uniquely different from the other as new narratives and technologies fight for attention. This year is no different. Ever since the widely reported crypto crash in quarter four last year, the crypto market has been in freefall, with prices in limbo. Bitcoin, Ethereum, Solana, and other prominent tokens in the market have all suffered a downtrend since the market crash. 

A combination of market factors, such as erratic price swings and large spread liquidation, has forced crypto traders to adapt in order to keep profits up. This, among other factors, seems to be the reason for the increase in on-chain perp activity as market participants rush to rotate capital into less risky instruments as market conditions worsen.

Solana traders are a prominent example of this phenomenon. With SOL at $92 as of the time of writing, there could be even more liquidations on the way. 

Solana Price Slump Forces Traders To Explore Alternatives Amid Worsening Market Conditions

Solana’s recent plummet to $92 as per Coinmarketcap data has forced the hands of many of its native traders, according to a recent report. The consensus among crypto analysts is that many Solana traders are pivoting to perpetual futures platforms in order to protect themselves against the raging volatility present in the crypto market at the moment. 

Despite soaring to new heights last year, Solana has found itself on the short end of the stick this year, falling below $100 barely two months into the new year. Whether or not the token recovers remains to be seen, but for now, the consensus seems to be to jump ship before it fully capsizes.

HFDX Records All-Time High Open Interest As Traders Pivot To Perps

HFDX is a decentralized, non-custodial trading protocol offering on-chain perpetual futures and structured DeFi yield strategies powered by real protocol activity. The platform, much like other perpetual futures platforms, has received massive interest from Solana traders as well as traders from other ecosystems recently due to worsening market conditions as a result of the latest crypto crash. 

Perpetual futures are becoming increasingly popular among traders communities in the crypto industry due to their perceived ability to act as a hedge during the ongoing market downturn. This much is illustrated by the recent record of open interest on platforms like HFDX. Open interest on the platform has reportedly surged above $113 million and will likely continue to surge as market conditions worsen. 

However, even among perp platforms, HFDX is emerging as a favourite for many reasons. One is the simple fact that it allows users to trade perpetual futures with leverage. The platform offers lucrative features such as its Liquidity Loan Note (LLN) strategies, which allow participants to allocate capital to protocol liquidity in return for pre-defined, fixed-rate returns over a stated term. 

Interestingly, these features are funded by actual activity on the platform, such as trading fees and borrowing costs, making them low-level risk opportunities. 

Furthermore, it offers users the opportunity to generate passive income simply by interacting with its smart contracts. HFDX reportedly offers its users up to 15% yield on all their total trading equity, extending this feature across all trading accounts and supported native currencies. 

The platform operates entirely on-chain and is designed to provide a risk-managed liquidity framework accessible to both active and passive capital participants. 

Make Your Money Work Smarter And Unlock A Wealth Of Opportunities With HFDX Today!

Website: https://hfdx.xyz/ 

Telegram: https://t.me/HFDXTrading 

X: https://x.com/HfdxProtocol