They can do both depending on timing and underlying liquidity.

Perpetual futures increase visibility, expand participation, and introduce leverage. In healthy markets with sufficient spot depth, PERPs improve price discovery and allow hedging, which can strengthen overall market efficiency.

However, when spot liquidity is thin or circulating supply is unstable, derivatives can amplify volatility. High leverage, funding rate imbalances, and liquidation cascades can accelerate downside moves. PERPs often magnify existing structural imbalances rather than create them.

The key variable is sequencing. If spot markets are deep and demand drivers are active, derivatives complement performance. If not, they can intensify instability.

Derivatives are accelerants — not foundations.