Incentive-driven growth sparks debate on sustainability of decentralized derivatives boom
Perpetual decentralized exchanges (perp DEXs) hit an all-time high of $70 billion in daily trading volume, with new derivatives platform Aster on BNB Chain accounting for more than half of the activity. The surge marks three consecutive days of record-breaking momentum for decentralized finance (DeFi) derivatives, but not without questions around the drivers behind this growth.
On Thursday, Aster recorded nearly $36 billion in trading volume, eclipsing rivals such as Hyperliquid and Lighter, which both logged volumes above $10 billion. The trend began earlier in the week, when Asterâs 24-hour volume reached $24.7 billion, more than double its closest competitor.
Asterâs trading incentives have been a central factor in this rapid ascent. Users are rewarded with points for trading, minting, and holding assets on the platform, making them eligible for an airdrop.
Community concerns over sustainability
While the growth highlights strong engagement, some observers argue the surge is not necessarily a reflection of long-term conviction. <u>Community members compared the situation to past episodes of incentive-driven trading</u>, such as the fee-mining wave in 2018 and the DeFi summer of 2021.
âVolume spikes may look good until the rewards dry up. This doesnât fully reflect organic demand.â Another added, âCash out even a small amount, unless you know what youâre doing. It is very easy to lose money at this stage of the market.â
These cautionary views underscore fears that retail traders may be left vulnerable if trading incentives taper off, leading to sharp drops in activity.
Despite the skepticism, Aster has demonstrated strong fundamentals across DeFi benchmarks. Its open interest surged to $1.25 billion in a single week, while its total value locked (TVL) crossed $2 billion, doubling within days of launch.
The rise of Aster highlights the increasing importance of perp DEXs in crypto trading, but <u>the sustainability of this growth hinges on whether activity can outlast incentive programs</u>. For now, Aster has positioned itself at the forefront of decentralized derivatives, sparking both excitement and caution in equal measure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.