Article Details

CZ Heralds Next Chapter in DeFi: The Perp DEX Era

TL;DR

• CZ announces the “perp DEX era,” boosting decentralized perpetual futures markets as a key option for global traders.
• ASTER hits a new all-time high of $2.37 following CZ’s comment, with record trading volumes of $2.9B.
• The rise of perp DEXs is driven by KYC limitations on centralized exchanges; non-custodial markets provide fast liquidity, predictable fees, and security.

Changpeng “CZ” Zhao, co-founder of Binance, announced the start of the “perp DEX era,” a period in which decentralized perpetual futures markets are establishing themselves as a fundamental option for traders worldwide.

CZ has expressed support for Aster DEX but has also encouraged other protocols to develop their own permissionless markets, catalyzing increased interest in this segment of the crypto industry.

CZ Pushes ASTER to All-Time Highs

CZ’s comment propelled ASTER to a new all-time high of $2.37, a 22% increase in 24 hours, with record volumes exceeding $2.9B. BNB remained above $1,000, down from a recent peak of $1,077, boosted by the integration of perp DEX swaps directly through Trust Wallet. In contrast, HYPE, the native token of Hyperliquid, fell to $45, as market attention shifted to the most in-demand assets, leaving older, less active projects behind. The current perp DEX token market is valued at $22B.

The Advantages of Perp DEXs

The rise of perp DEXs is partly explained by regional restrictions and KYC requirements on centralized exchanges, which pushed traders to seek immediate liquidity in decentralized markets. These non-custodial DEXs offer predictable fees, fast liquidity for new assets, and protection against fund-loss risks, similar to those experienced during FTX’s collapse. Additionally, the native tokens of these markets provide growth potential and revenue sharing, a crucial factor for ecosystem trust.

Perp DEXs aim to attract both whales and retail traders. Aster and Hyperliquid remain the benchmarks, while other active projects include Pacifica, EdgeX, Avantis, and Lighter. The combination of high liquidity, valuable tokens, and transparent tokenomics has created a competitive environment where new protocols compete to offer better trading opportunities and benefits to users.

The decentralized perpetual futures market is becoming a key space for DeFi adoption, giving traders access to up to 100x leverage and over 100 markets through platforms like Trust Wallet. CZ’s announcement helps reinforce and accelerate the ecosystem’s growth, benefiting all participants