Newcomer Aster raised eyebrows over the weekend when it tripled in price after listing on Binance. But can the upstart perps exchange dethrone DeFi darling Hyperliquid?
Hyperliquid’s dominance of the on-chain perpetual swaps market has been clear, attracting over $6 billion in total value locked (TVL) and cementing user loyalty with a generous airdrop late last year.
Traditionally dominated by centralized exchanges (CEXs), Hyperliquid’s rise didn’t go unnoticed by the likes of Binance and friends. As on-chain volumes ballooned, exchanges looked on aghast, watching fees accrue to Hyperliquid users instead of their own coffers.
Now, DEX volume on new entrant Aster, which is backed by YZi Labs (formerly Binance Labs), eclipsed that of Hyperliquid over the weekend, according to DeFiLlama data.
Former Binance CEO Changpeng “CZ” Zhao congratulated Aster on its post-launch price action. In the days following CZ’s tweet, ASTER’s price increased tenfold.
YZi Labs’ website jokingly lists CZ as an “intern.”
Read more: Binance wants a Trump partnership and a pardon for CZ, report
Aster was formed via a merger between previous perps DEX APX (formerly Apollo X) and Astherus and brings some additional features over Hyperliquid.
Specifically, it offers users “hidden trades” which are invisible to the public order book, and “cross-chain trading.”
Its surge, however, has prompted doubts as to whether such momentum can be sustained. Some have even voiced concern over the extent of insider token ownership and tactics used to attempt to unseat Hyperliquid from the perp DEX top spot.
Read more: ZKasino exploiter saw $27M liquidated on Hyperliquid trade
Is the HYPE overblown?
Heavy HYPE holder Arthur Hayes, despite predicting a 126x price pump a few weeks ago, decided to unload his bags “to pay my deposit on the new Rari 849 Testarossa.”
His decision is allegedly down to research by his fund Maelstrom, which cites concerns over a “Damocles’ Sword” of team token unlocks following the project’s runaway success.
The post even points to CZ’s timing in promoting Aster in the runup to token unlocks as “probably not a coincidence.”
However, the unlocks aren’t exactly news; the vesting schedule has been public knowledge since HYPE’s launch. Unlocks of team tokens begin in November, at a rate of around $500 million per month, and last two years.
Hayes is not the only HYPE whale to have had a change of heart. Yesterday, 2.39 million HYPE, worth $122 million, were withdrawn after being obtained nine months ago, according to on-chain investigator Lookonchain.
ASTER vs HYPE
The spike in on-chain perps trading, kicked off by Hyperliquid’s success, has led to plenty of visibility, with trading streams and even eSport-style competitions popping up online and in real-life.
Read more: Are North Korean hackers liquidated on HyperLiquid planning something?
As to whether Aster can continue to capitalize on its wild weekend, it’s likely too early to say.
For now, though, it looks like they’re keen to pile on the pressure. Aster have just offered 300x perps on HYPE “by community request.” Maximum leverage on other assets tops out at 100x.
In recent volatility, both tokens racked up around $15 million of liquidations each, according to Coinglass 24hr data. Almost all liquidated HYPE positions were long, while liquidated ASTER traders were split around two-thirds long to one-third short.
In all, around $1.7 billion worth of positions were liquidated across all crypto markets.
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Source: https://protos.com/aster-vs-hyperliquid-inside-the-high-stakes-perp-dex-war/