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Trading Type
Spot
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Trade new tokens before they are officially listed
Margin
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Convert & Block Trading
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Alpha
Points
Get promising tokens in streamlined on-chain trading
Leveraged Tokens
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Futures
Futures
Hundreds of contracts settled in USDT or BTC
Options
HOT
Trade European-style vanilla options
Unified Account
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Demo Trading
Futures Kickoff
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Futures Events
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Demo Trading
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Launch
CandyDrop
Collect candies to earn airdrops
Launchpool
Quick staking, earn potential new tokens
HODLer Airdrop
Hold GT and get massive airdrops for free
Launchpad
Be early to the next big token project
Alpha Points
NEW
Trade on-chain assets and enjoy airdrop rewards!
Futures Points
NEW
Earn futures points and claim airdrop rewards
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Simple Earn
Earn interests with idle tokens
Auto-Invest
Auto-invest on a regular basis
Dual Investment
Buy low and sell high to take profits from price fluctuations
Soft Staking
Earn rewards with flexible staking
Crypto Loan
0 Fees
Pledge one crypto to borrow another
Lending Center
One-stop lending hub
VIP Wealth Hub
Customized wealth management empowers your assets growth
Private Wealth Management
Customized asset management to grow your digital assets
Quant Fund
Top asset management team helps you profit without hassle
Staking
Stake cryptos to earn in PoS products
BTC Staking
HOT
Stake BTC and earn 10% APR
GUSD Minting
Use USDT/USDC to mint GUSD for treasury-level yields
More
Promotions
Activity Center
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Referral
20 USDT
Earn 40% commission or up to 500 USDT rewards
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Gate Blog
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Proof of Reserves
Gate promises 100% proof of reserves
Ethereum DeFi dominance and the derivatives dilemma: Why strong fundamentals can't support the price?
【Crypto World】Ethereum’s price has indeed shown little movement recently, but its dominance on the chain remains strong. 68% of the total locked value in DeFi is captured by Ethereum. If its Layer 2 networks are spun off, this number could surpass 70%.
Institutional enthusiasm for ETH remains high. Tom Lee’s Bitmine has staked 74,880 ETH, worth $219 million, clearly optimistic about the future. However, some institutions like SharpLink Gaming are engaging in strategic redemptions, choosing to lock in gains.
Where is the problem? The derivatives market. The leverage ratio has hit a new high—nearly $5 in futures for every $1 of spot ETH. What does this mean? Binance predicts that by 2025, ETH futures trading volume will exceed $6.7 trillion. This excessive leverage directly suppresses spot prices, causing market volatility to become completely disconnected from fundamentals. Prices that should be supported by fundamentals are instead being pushed down by leverage risks in the derivatives market.