**Aster TVL Explodes:** Binance-Linked DeFi Challenger Hits $2B Before Dramatic Pullback

The decentralized finance (DeFi) world recently witnessed a significant event. Aster, a new contender in the DeFi perpetuals exchange arena, experienced a phenomenal surge in its Total Value Locked (TVL). This rapid ascent, briefly touching an astounding $2 billion, quickly captivated the crypto community. However, the initial euphoria proved short-lived, as its TVL swiftly corrected. This dramatic movement sparked widespread speculation, particularly regarding the potential involvement of Binance co-founder Changpeng “CZ Zhao.”

Aster TVL: A Swift Ascent and Subsequent Correction

Aster, a BNB Chain-based decentralized perpetuals exchange, launched its native APX token, triggering a massive influx of capital. On Thursday, its Total Value Locked (TVL) briefly soared past the $2 billion mark, according to DefiLlama data. This impressive peak highlighted significant investor interest and liquidity flowing into the platform. Yet, the surge was short-lived. By the end of the day, Aster’s TVL had fallen sharply, settling at $545 million. The project’s value stabilized somewhat, rebounding to $655 million by Friday. Despite this pullback, the current TVL still represents nearly double its typical range of $300 million to $400 million before the token’s debut.

The token launch also fueled a notable increase in trading activity. Aster recorded $434 million in 24-hour volume. This placed it among the most active decentralized finance derivatives platforms. This trading volume underscores the immediate attention and engagement the platform garnered from the crypto community. Despite these significant milestones, Aster still faces a considerable challenge. It aims to compete with its primary rival, Hyperliquid, in the competitive DeFi perpetuals space.

Aster’s TVL drops to $1.9 billion after briefly hitting $2 billion on Thursday. Source: DefiLlama

CZ Zhao’s X Post Ignites Binance Speculation

The rapid rise of Aster gained even more attention following a public congratulation from CZ Zhao. The Binance co-founder posted on X, simply stating, “keep building.” This seemingly innocuous comment ignited a flurry of speculation among community members. Many users immediately connected Zhao to the Aster project. Some pointed to recent changes in his X profile. They suggested Aster was a direct response to the impressive growth of Hyperliquid, a leading competitor. One community member speculated that Zhao might have recognized a business risk and launched Aster in response. Another X user went further, asserting Zhao was “obviously pissed about hyperliquid” and was “back in charge” after removing the “ex-Binance” tag from his profile.

This speculation, however, directly conflicts with Zhao’s legal standing. US authorities imposed a lifetime ban on him from managing Binance in 2024. This restriction was part of his plea deal. Binance CEO Richard Teng confirmed this ban last year. Zhao himself has since described his role as merely a “community member and a BNB holder.” He reiterated this point in a celebratory X post when BNB hit $1,000 for the first time. Therefore, while the community’s theories are abundant, official statements and legal constraints limit CZ’s direct operational involvement with Binance or its related projects.

Source: Tulip King

Aster’s Documented Ties to Binance and YZi Labs

Despite CZ Zhao‘s distancing, Aster maintains documented connections to the broader Binance ecosystem. Binance Labs, the former venture capital arm of the exchange, rebranded to YZi Labs in January. This entity is the family office tied to Binance co-founders CZ and Yi He. An announcement confirmed that Zhao would actively coach and mentor startup companies within this incubator. In November 2024, YZi Labs announced its investment in Astherus, Aster’s predecessor. This direct financial backing establishes a clear link.

A BNB Chain representative further clarified Aster’s support. They informed Crypto News Insights that Aster received assistance from both BNB Chain and YZi Labs. The spokesperson detailed the comprehensive support Aster gained. This included mentorship, ecosystem exposure, and access to essential technical and marketing resources. However, it remains unclear whether Zhao directly coached or mentored Aster. The BNB Chain representative also confirmed, “Additionally, Aster got investment from YZi Labs (formerly Binance Labs) as part of the incubation program.” These connections suggest a strong, if indirect, relationship between Aster and the Binance-linked entities, providing a foundation for its rapid growth in the DeFi perpetuals market.

Source: CZ

Challenging Hyperliquid: Aster’s Position in DeFi Perpetuals

Aster has achieved significant milestones since its launch. Yet, it still has a considerable distance to cover to catch its main rival, Hyperliquid. Hyperliquid currently dominates a substantial portion of the DeFi perpetuals market. According to DefiLlama data, Hyperliquid reported a TVL of $670 million. Furthermore, its daily trading volume reached $800 million, and its open interest stood at an impressive $15 billion. In contrast, Aster’s open interest was $3.72 million at the time of reporting. These figures highlight the scale of Hyperliquid’s operations and the challenge Aster faces.

Despite the competitive landscape, the BNB Chain representative expressed strong support for Aster. They proudly stated that Aster is now the number one perpetual DEX on the blockchain. The representative emphasized the importance of derivatives in any thriving DeFi ecosystem. They affirmed their intention to fully support Aster’s growth. The spokesperson concluded, “Derivatives are a crucial part of any DeFi ecosystem. We will keep supporting Aster, and we look forward to seeing more perpetual protocols emerge and grow to further enrich BNB Chain’s ecosystem.” This commitment indicates a strategic push to strengthen the BNB Chain’s derivatives offerings and boost Aster’s competitive edge.

Community Feedback and The Future of Aster TVL

While Aster celebrated its initial success, the platform also faced criticism from some community members. One X user publicly claimed they lost funds while attempting to withdraw them. Another user reported that the platform simply did not function for them. These anecdotal reports suggest potential technical issues or user experience challenges during the launch phase. Crypto News Insights reached out to Binance, CoinMarketCap, Aster, and YZi Labs for comment. However, they did not receive a response by the time of publication.

The fluctuating Aster TVL and the mixed community reactions highlight the volatile and dynamic nature of the DeFi sector. Aster’s journey, influenced by its ties to CZ Zhao-linked entities and its competition with established players like Hyperliquid, will be crucial to watch. The platform’s ability to address user concerns, maintain liquidity, and innovate within the DeFi perpetuals space will determine its long-term success. The commitment from BNB Chain suggests continued backing, but market adoption and user trust will ultimately define Aster’s trajectory in the competitive decentralized derivatives landscape.