Singapore – At the time Token2049 is re -converted next year, today’s headline grabbing decentralized exchanges such as Hyperliquid and Aster no longer dominate, Bitmex CEO Stephan Lutz Coindesk told in an interview that warning that their incentive -right business models are too fragile to last.
Recently, a competitive battle has erupted in the eternal decentralized exchange sector (Perp Dex), with new platforms such as Aster and slightly challenging Hyperliquid’s previous dominance.
Last week, Aster Hyperliquid surpassed in terms of 24-hour trading volume. This has given rise to a race among competitors to launch new DEXs for the purpose of capturing market share in this expanding field.
In this context, Justin Sun announced the launch of a new DEX at the Token2049 conference in Singapore, signaling further intensification in this rapidly evolving landscape.
However, the excitement is probably short-lived according to Lutz, who called DEXS as inherent pump-and-dump schemes.
“DEXS is about giving access to markets without intermediaries, and they build speed by relying on incentives, it’s basically an inherent pump and dump scheme,” Lutz said. “I don’t mean it in a bad way or as a scam. It’s all public, you know what you’re getting into.”
He compared the incentive programs with an advertising flash that adds attention, explaining that these platforms connect users with token rewards and fees and then depends on this feedback loop to keep people trading.
“The question is what sticks?” he continued.
This boom -and -bust -cadence not only makes it difficult for dexs to maintain the liquidity in the long term, he added, it also means that retailers hunting large yields are exposing to significant volatility and risk.
Unlike the churn he sees in Defi, Lutz said that the largest centralized exchanges, led by Coinbase and its comrades, are well placed to ride out of these bikes and stay dominant long after the latest Dex incitaments are falling.
He added that Bitmex’s goal is to tighten both worlds and note that while he sees defi lasting and embraces it personally as a crypto -inborn, institutions cannot interact with what they can with a centralized exchange.
Bitmex’s Tokyo Pivot
The Japanese capital, not Hong Kong or Singapore, is where the trading volume is, according to Lutz.
In August, Børsen officially moved its data infrastructure to AWS Tokyo from AWS Dublin in a step aimed at increasing liquidity. The contact has delivered the desired results and emphasizes Japan’s attractiveness.
“We were in Ireland before … but it became more and more difficult because basically everyone except the American players are in Tokyo data centers,” he said.
He said Switch increased liquidity by approx. 80% in Bitmex’s main contracts and up to 400% in some altcoin markets, he wins he is not attributed to market producer intervention, but to reduce latency by being in Tokyo.
Looking toward the next crypto -cycle
Lutz predicts that the next crypto cycle will look significantly different from previous booms and busts.
With greater institutional participation, he said, BTC could behave more like a “real asset” that smooths the dramatic peaks and troughs that have defined previous races.
“I expect that with greater adoption we will look longer platases than in previous cycles; the market will still follow the same rules and properties, but with lower volatility as it becomes a truly asset embraced by the world’s wealthy,” he said.
The volatility Bitcoin Market has dropped significantly since the debut of Spot -Tfs in the US last year. In addition, BTC’s implied volatility index has steadily developed into VIX-like structures that move in the opposite direction of spot prices.
All this means that although some of these new DEXS offering eye-watering gearing-as Lutz thinks they won’t last until next year there is no fireworks for BTC. Instead, it looks like any other sophisticated asset class with gradual ups and downs as the market cycle continues.
