Trading volumes for perpetual contracts on decentralized exchanges (DEXs) soared to a record $70 billion on Thursday, propelled by Aster, a new derivatives platform on the BNB Chain.
Perpetual DEXs have hit unprecedented volumes for three consecutive days as activity in decentralized perpetuals intensified. On Tuesday, the total volume for perp DEXs reached $52 billion, followed by $67 billion on Wednesday.
The volume exceeded $70 billion on Thursday, indicating a resurgence in the decentralized finance (DeFi) derivatives markets.
Aster dominated the leaderboard with nearly $36 billion in 24-hour trading volume, accounting for over 50% of the total perp DEX activity that day. The platform outperformed competitors like Hyperliquid and Lighter, both recording volumes over $10 billion.
Incentive farming drives perpetual DEX trading activity
Aster’s impressive performance on Thursday followed its increasing influence in decentralized derivatives. On Wednesday, Aster eclipsed its competitors with $24.7 billion in 24-hour volume, more than double Hyperliquid’s results for that day.
While trading volume is a critical metric indicating interest and market confidence in a platform, Aster’s growth was also spurred by attractive incentives for platform users.
Users earn points through trading, minting, and holding on Aster’s DEX, making them eligible for an Aster airdrop.
As a result, community members expressed concerns that the volume surge could negatively impact retail traders. One user mentioned that volume spikes may appear favorable until the rewards diminish, suggesting that the volume did not truly reflect market confidence.
Another community member likened the volume spike to the trading fee-mining era in 2018 and the DeFi boom of 2021, cautioning that such periods usually don’t end well for retail traders.
“Withdraw even a small portion unless you are knowledgeable. It’s very easy to incur losses in this phase of the market,” the user stated.
Related: Machi Big Brother exits $25M HYPE bet at $4M loss as rivals eat Hyperliquid market share
Aster open interest surged to $1.25 billion in one week
Since its launch, Aster has excelled in key DeFi metrics. On Friday, Aster recorded a trading volume exceeding $400 million and doubled its total value locked (TVL). The platform continued its upward trend, achieving a TVL of over $2 billion on Thursday.
Furthermore, Aster’s open interest, which measures the total number of unsettled contracts, reached $1.25 billion on Wednesday.
Magazine: How do the world’s major religions view Bitcoin and cryptocurrency?
