ASTER Debuts with $1B Market Cap, Eyes Rivalry with Hyperliquid

ASTER launched as the native cryptocurrency of the derivatives platform of the same name and immediately reached a market capitalization of $1 billion.

Can ASTER replicate Hyperliquid and HYPE?

Hyperliquid, a crypto exchange specializing in derivatives, is experiencing tremendous success with its proprietary token, HYPE, reaching a market capitalization of approximately $19 billion. ASTER’s stock market debut yesterday was met with considerable interest, with a daily increase of approximately 50 percent and a market capitalization of $1 billion as the initial results.

Like Hyperliquid, Aster (formerly APX) organizes derivatives trading as a decentralized crypto exchange (DEX). The token was initially launched through an airdrop. Is a rivalry between Aster and HYPE now beginning?

Experts have primarily observed Hyperliquid increasing its market share in the crypto futures sector, with daily turnover of $10 billion becoming the norm. Aster currently has around $1.4 billion in daily trading volume in crypto derivatives, lagging far behind the DEX market leader Hyperliquid. However, centralized crypto exchanges are also a benchmark for the two cryptos, with Binance dominating the derivatives sector with around $80 billion in daily trading volume.

Aster benefits from advertising by Binance founder Changpeng Zha

Aster is closely linked to Binance and was developed by YZi Labs, formerly known as Binance Labs. CZ, aka Changpeng Zhao, the founder of Binance, posted an X yesterday and congratulated Aster – the nearly 3 million views of the post were welcome publicity. The project can therefore also be seen as an attempt to fend off Hyperliquid’s indirect attack on Binance.

Whether this works will be seen in the coming months. Initial impressions of using the Aster DEX show that much work remains to be done; the user experience is modest and far from the level of Hyperliquid. Aster reports 2 million registered users, while Hyperliquid has just under 700,000. Both platforms have attracted many new registrations through airdrop programs for ASTER and HYPE, respectively.

Conclusion: ASTER vs. HYPE – Hyperliquid as top dog with advantages

Trading in ASTER tokens on Binance is yet to open and could trigger a further price surge. However, daily trading volumes on Aster and Hyperliquid will continue to be crucial for a thorough evaluation, as they generate fee income and also finance a buyback program on HYPE.

There’s no guarantee that Aster will emerge as a challenger to Hyperliquid in the medium and long term. However, there’s still plenty of room for improvement in the derivatives sector of decentralized crypto exchanges; Artur Hayes has predicted a sustained rally for HYPE. Once the initial excitement surrounding ASTER has subsided, we’ll know more about whether Hyperliquid has to fear this competition.

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(Featured image by Markus Spiske via Unsplash)

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