Hey there, crypto enthusiasts! If you've been scrolling through X lately, you might have stumbled upon a fascinating thread by @0xkyle__ that dives deep into the economics of perpetual decentralized exchanges (Perp DEXs) versus launchpads. Posted on August 5, 2025, this thread is a goldmine for anyone looking to understand the future of decentralized finance (DeFi) and how these platforms stack up against each other. Let’s break it down in a way that’s easy to digest, especially if you’re into meme tokens or blockchain innovation!

The Basics: What Are Perp DEXs and Launchpads?

First things first—let’s clarify these terms. A Perp DEX is a decentralized exchange where you can trade perpetual futures contracts, meaning you can bet on the price of crypto assets like Bitcoin or Ethereum without owning them outright. These platforms thrive on volatility and offer continuous revenue through trading fees and funding rates. On the other hand, launchpads are platforms that help new crypto projects raise funds by launching their tokens, often through Initial DEX Offerings (IDOs). They make money during the “creation moment” of a token, which can include meme coins that take the market by storm.

Think of Perp DEXs as a bustling marketplace that keeps the lights on 24/7, while launchpads are like a launch party that earns big during the initial hype but quiets down afterward.

Revenue Showdown: The Charts Tell the Story

Kyle’s thread comes with some eye-catching charts from DeFiLlama and Blockworks Research, showing revenue trends for both models over 2025. Check out this first chart:

This graph tracks the revenue of a Perp DEX (likely Hyperliquid, as mentioned) from January to August. You can see a dip in April—a market lull—followed by a strong rebound in June and July as trading volume picked up. The red arrows highlight a drop and then a climb, showing how Perp DEXs respond to market volatility.

Now, let’s look at the launchpad revenue chart:

Here, we see a big spike early in the year, likely tied to a bull market rush, followed by a decline. Unlike Perp DEXs, launchpad revenue doesn’t bounce back as strongly in June or July. This suggests launchpads rely heavily on new token launches and fresh capital, which can dry up outside of bullish conditions.

Why the Difference? Key Drivers Explained

So, what’s driving these trends? Kyle points out that Perp DEXs and launchpads operate like two different “zero-sum games.” Perp DEXs earn money continuously through trading activity—think of it as a steady stream from fees and funding rates. Launchpads, however, cash in only when a new token drops, making them more like a one-time event. Plus, Perp DEXs scale better with improved tools and deeper liquidity, while launchpads don’t benefit as much from cutting launch taxes or pumping out more tokens.

Market conditions play a huge role too. Launchpads shine in bull markets when new investors pour in, eager to grab the latest meme token. But in a bear market, trading volume drops across the board, and launchpads feel the pinch more than Perp DEXs, which can still profit from volatility even when prices are down.

The Asset Factor: Meme Tokens and Beyond

Let’s talk assets—especially meme tokens, which are a big deal at meme-insider.com. Kyle argues that launchpad coins, including meme tokens, face bigger risks. With low entry barriers, millions of tokens get created, leading to confusion about what to trade. Plus, they’re easy targets for scams, and once money leaves the ecosystem, it’s gone. Meme tokens often see a “one and done” trading spree, unlike Bitcoin or Ethereum, which get traded constantly on Perp DEXs.

Adding an Automated Market Maker (AMM) to a launchpad might sound like a fix, but Kyle warns it could turn it into a full-fledged DEX, competing with bigger players for order flow. Without the steady volume of major assets like BTC or ETH, launchpads struggle to sustain revenue.

The Verdict: Sustainability Matters

So, which model wins? Kyle ranks the total addressable market (TAM) from largest to smallest: Perp DEXs, trading tooling (like Photon or Axiom), DEXs, and finally launchpads. While launchpads might rake in big numbers during a bull run, their revenue isn’t as sustainable. Perp DEXs, with their ability to clear $8-9 million daily even in low-volume periods, seem to have the edge.

For meme token fans, this is a wake-up call. Launchpads might fuel the next viral coin, but their reliance on novelty makes them less reliable long-term. Perp DEXs, fueled by volatility, offer a more enduring play in the DeFi space.

What’s Next for Blockchain Practitioners?

If you’re a blockchain practitioner or just love diving into crypto trends, this thread is a treasure trove. It’s a reminder to think beyond the hype of meme tokens and consider the infrastructure—like Perp DEXs—that keeps the market moving. Keep an eye on tools like Axiom, which could own the end-user experience, and stay tuned to meme-insider.com for the latest updates on how these trends shape the meme token world!

What do you think—will launchpads evolve, or will Perp DEXs dominate? Drop your thoughts in the comments!