CZ's Hyperliquid Competitor Sees ASTER Token Pump

CZ-backed perp DEX Aster’s $ASTER token surged nearly 15x after its token generation event last week, with CZ's endorsement driving bets on a challenge to Hyperliquid's dominance.

What's the scoop?

• Launch and Backing: Last week, perp/spot DEX Aster, backed by YZi Labs and endorsed by CZ, had its token generation event, surging nearly 15x in the aftermath.
• The Hyperliquid Killer: Traders are betting on Aster being CZ’s play to “kill” Hyperliquid and that he will throw his full weight of support behind the DEX to do so, which many suspect he has already done given the token’s price appreciation.
• Competitor Momentum: A series of other perp DEXes have also posted significant returns over the last week as traders assume that, following Aster, every chain will similarly “show up” for their perp DEXes in an attempt to replace and replicate Hyperliquid’s success.

Bankless Take:

While there is merit to the argument of CZ’s support and firepower (especially as he is seemingly reinstated at Binance) being a formidable force for Hyperliquid to compete with, the true test for Aster will come once its upcoming airdrop is complete, as many of the traders that have moved over are looking to farm a lucrative, high value token. At the end of the day, it makes sense that competition for perpetuals would greatly increase given the immensity of Hyperliquid’s success over the past year. Yet, I lean in the direction of Hyperliquid clearing this period as the DEX still on top, given the whole Aster ordeal seems quite artificially constructed and that many are viewing it as a “compensation” trade to missing out on Hyperliquid.