RWA perpetual contracts are rapidly gaining popularity, potentially surpassing tokenization in the financial market, according to DWF Labs' Martin Lee.
Perpetual contracts linked to real-world assets (RWAs) are rapidly gaining traction in the financial markets, according to Martin Lee, the Market Insights Lead at DWF Labs. He predicts that these contracts will soon surpass tokenization as the leading innovation from the crypto sector to traditional finance (TradFi).
While tokenization has made significant strides, with over $34 billion in assets tokenized so far, the growth of RWA perpetual contracts is staggering. In May, their volume skyrocketed to $347 billion, a remarkable 1,472-fold increase from just $230 million at the start of 2025. As of July, daily open interest on decentralized exchanges (DEXs) reached an all-time high of $4.5 billion, and total exchange volume for May hit $1.32 trillion, which is 13 times the total for all of 2025.
Round-the-Clock Trading Advantages
The rise in RWA perpetual contracts is driven by crypto traders looking for exposure to commodities and AI stocks, as these contracts often outperform traditional futures and options. Unlike traditional finance, perpetual contracts allow for continuous trading without interruption, making them more responsive to market events.
For example, developments in the Iran conflict were reflected in oil perpetual contracts on Hyperliquid before the CME markets reopened. This continuous market operation simplifies trading by eliminating expiry dates and complex pricing models often associated with traditional derivatives.
Derivatives Surpassing Spot Markets
Historically, derivatives markets have outperformed their underlying spot markets, a trend that is evident with RWAs as well. For instance, between March and May 2026, equity perpetual volumes on Hyperliquid were found to be 13-20 times greater than those of tokenized equity spot volumes. Although the number of traders in spot markets is larger, the growth rate for perpetual contract holders is outpacing that of spot markets.
Fostering Innovation in Trading
The quick development of RWA perpetual contracts allows for rapid experimentation, unlike the often lengthy and complex process of launching tokenized assets. This agility facilitates the introduction of innovative synthetic markets, such as pre-IPO markets, which provide retail investors with access to promising private companies.
For instance, the debut of Cerebras on Nasdaq in May showcased how Hyperliquid's pre-IPO perpetual contract closely matched the opening price, indicating the efficiency of perpetuals in price discovery.
Future of Perpetuals in Finance
At the start of the year, RWA perpetuals accounted for only 1.3% of on-chain perpetual volume, but they now represent 31%. This shift highlights the growing integration of RWAs into perpetual contracts. Crypto-native platforms are more agile than traditional institutions, which could lead to broader acceptance of these products in TradFi. Robinhood has already begun offering RWA perpetuals to European customers, which could prompt other brokerages to follow suit. As a result, perpetual contracts could become the dominant method for trading across various asset classes, extending beyond crypto.
In conclusion, while tokenization has been a significant contribution of crypto to traditional finance, the emergence of perpetual contracts is set to redefine the landscape in the near future.
