Aster, a decentralized perpetuals exchange launched in early September, has witnessed a 10% decline in just the last 24 hours.
Despite gaining initial traction and support from Binance founder Changpeng Zhao (CZ), signs of faltering sentiment are becoming apparent.
Analyst Explains Why Aster Price is Dropping
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As of this writing, Aster’s native token, ASTER, was trading at $1.87, down 8% in the last 24 hours. The token is now more than 20% lower than its recent peak of $2.43, reached on September 24.
In light of this, analysts have examined the factors contributing to the price decline of the decentralized exchange (DEX) token.
Price Pressure and User Doubts
The sell-off occurred amid rising doubts regarding Aster’s platform performance. Investor Mike Ess shared on X (Twitter) that he offloaded 60% of his Aster holdings, reallocating into Bitcoin (BTC) and Plasma (XPL).
While he remains in profit, he attributed his decision to instinct after Changpeng Zhao’s recent remarks and dissatisfaction with Aster’s offerings.
“If you’ve used HYPE, then switched to Aster, you know exactly what I mean. It feels slower, less polished, and copy-paste… The more capital I have on it, the riskier it feels,” wrote Ess.
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Other traders voiced similar apprehensions. Clemente, another notable figure on X, stated he exited his Aster position entirely in favor of Hyperliquid’s HYPE token.
“Hyperliquid is clearly the leader in every metric other than crime and CEX distribution,” the analyst argued.
Mixed Signals From CZ
CZ’s engagement has been a double-edged sword. On September 28, the crypto executive positioned Aster as a complementary project within the broader BNB Chain ecosystem, despite competing with the Binance exchange.
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His venture firm, YZi Labs (formerly Binance Labs), holds a minority stake in Aster, which also features a team of former Binance employees.
Nevertheless, traders like Ess perceived CZ’s demeanor during a recent Spaces call as distant, which fueled questions about his level of commitment. For some, this impression was sufficient to motivate risk reduction.
“If CZ stops talking about it, HYPE wins hands down,” Ess cautioned.
Still, optimistic voices persist. A user known as Cooker expressed confidence that Aster will leave a lasting impact on the perp DEX market.
Meanwhile, others, like Crash, argued that Aster could surpass Solana and Ethereum in percentage gains over the upcoming cycle.
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Strong Fundamentals, Lingering Uncertainty
By various metrics, Aster’s fundamentals remain robust. Since its launch, the platform has generated over $82 million in fees, and total value locked (TVL) has surged to $701 million on BNB Chain. For a project that is only weeks old, this reflects substantial adoption.
However, the swift decline underscores the challenge of balancing early growth with user confidence and product dependability.
Analysts caution that competition with Hyperliquid is gaining traction, and without continuous product enhancements, momentum may wane.
Thus, the future of Aster’s price remains contentious, with advocates viewing it as a new contender with CZ’s endorsement in a rapidly evolving ecosystem. Conversely, skeptics claim Aster may be unfinished and overpromoted.
