Altcoin Demand Meets $18B Threat as Traders Flock to Traditional Asset Perps

Crypto exchanges are facing a growing threat from traditional asset perpetual futures (RWA perps) as traders increasingly turn to these products for leverage and volatility. According to Talos, daily volume in RWA perps rose from under $1 billion in January to $18.8 billion during September 3-9, representing 18.5% of futures volume across those venues.

This shift has significant implications for altcoins, which are no longer the only game in town when it comes to trading perpetuals. Traders can now find leverage and volatility in traditional asset markets, reducing the need for new tokens. In fact, only 19% of traders keep alts, according to the data.

The changing product mix creates a competitive threat for altcoins, which are competing with each other as well as with traditional assets. As Hyperliquid's data shows, most traders stay in their lanes, but there is a smaller group of high-frequency traders who treat both markets as trading opportunities.