On-chain derivatives are DeFi’s next boom opportunity

On-chain derivatives are set to become the next big growth sector in the decentralized finance (DeFi) space, says Henrik Andersson, the chief investment officer of Australian crypto investment firm Apollo Capital.

In a wide-ranging interview with Cointelegraph, Andersson said he thinks the increasing popularity of decentralized spot trading will inevitably lead to outsized demand for decentralized derivatives.

“The first decentralized spot exchanges were launched roughly six years ago. Decentralized perpetuals and futures trading is much newer, so there is a high growth opportunity to be had with on-chain derivatives.”

Andersson explained decentralized spot exchanges have continuously gained market share from centralized exchanges — a trend that has only increased since