Perp Volumes Decline

DeFiLlama data shows that perpetual volumes across major DEX chains have been on a steady decline for five consecutive months, from a peak of $1.36 trillion in October 2025 to $699 billion by March 2026. This decline indicates that traders are becoming increasingly cautious, wiping out nearly half of last quarter's perp volume. The drop in perp volume could be a sign that traders are stepping back, and markets are consolidating, which might be a healthy sign in a bear market. However, it also suggests that speculative capital is drying up, which could hinder any potential rallies. The next few weeks will be crucial in determining whether perp volumes will continue to decline or if traders will start to re-enter the market, with the May window being a key period to watch for any changes in market sentiment.