In a recent tweet, Galaxy CEO Mike Novogratz, who is also an early Bitcoin investor, hints at the next big trend for the crypto market.
In a tweet, Novogratz calls “perp equities” a big idea, saying “crypto loves leverage.”
Perpetual Futures (PERPs) allow for continuous trading without expiry, using funding rates to keep prices aligned with spot markets while allowing leverage as high as 500x.
Some decentralized exchanges already offer perpetual futures on U.S. stocks with high leverage and indexes with leverage up to 50x, which are already gaining interest on the market.
In just 24 hours after its launch, Hyperliquid’s equity perpetuals (equity perps) generated nearly $100 million in trading volume. In just 24 hours after its debut, Hyperliquid’s equity perpetuals (equity perps) generated nearly $100 million in trading volume, reflecting a broader appetite for leverage on modern markets. Equity perps gain an advantage as they evolve traditional equities market into a 24/7, fully on-chain trading ecosystem.
Some analysts predict that global equity perps may represent crypto’s most significant growth opportunity over the next 12-18 months, potentially outpacing stablecoins.
As trading begins to follow the sun, PERPs tied to well-known equities might see increasing adoption in the days ahead. Given their 24-hour nature and high leverage, these instruments can amplify volatility across both derivative and spot markets.
Galaxy’s focus on crypto and AI
In May, Galaxy Digital listed on the Nasdaq, marking a significant milestone. The crypto investment company, which also specializes in artificial intelligence data center infrastructure, had previously been listed on the Toronto Stock Exchange before debuting on the Nasdaq.
“I think we’re at the beginning of the race, not the end of the race,” Novogratz stated shortly after the listing.
Galaxy’s value now hinges on two high-growth areas: crypto and artificial intelligence, with Novogratz highlighting these as the two most exciting growth areas in markets.