Kalshi's New Perps Could Siphon On-Chain Liquidity, Alliance Founder Warns

Prediction market platform Kalshi recently launched Ethereum, XRP, and Solana perpetual futures following approval from the Commodity Futures Trading Commission, a move that Alliance co-founder Imran Khan said could pull trading activity and capital away from decentralized venues. Ethereum perpetual futures went live on Kalshi on June 4, followed by XRP and Solana perpetual trading on June 10.

Khan argued in a post on X that the new products could erode on-chain liquidity, particularly affecting platforms such as Hyperliquid and Polymarket, which offer exposure to on-chain liquidity. "Personally, I think Kalshi's products are net negative for on-chain liquidity," Khan wrote. He added that "every product they launch pulls trading liquidity off chain rather than onchain." Khan said Kalshi's regulated, closed-loop environment could draw users seeking derivatives exposure toward its centralized infrastructure, reducing volume and depth on on-chain trading protocols.

The criticism comes as Kalshi expands its crypto derivatives lineup, with the platform reportedly planning to introduce DOGE, SHIB, HYPE, and XLM futures after additional CFTC approval. Launched under CFTC oversight, Kalshi's crypto perpetual futures operate within a regulated framework that differs from the permissionless structure of decentralized exchanges. The platform's entry into crypto perps marks one of the first times a U.S.-regulated prediction market has offered leveraged exposure to major digital assets outside of traditional futures exchanges.

Khan's remarks highlight ongoing debate within the crypto industry over whether regulated derivatives platforms complement or compete with decentralized alternatives. As Kalshi broadens its product suite, the question of where trading liquidity ultimately settles, on-chain or off-, remains a point of contention among market participants.