Data aggregator DefiLlama removed derivatives exchange Aster from its listings Sunday, citing concerns that the platform's reported trading volumes mirrored those of Binance's perpetuals market. The delisting came after Aster, backed by YZi Labs formerly known as Binance Labs, had surged past Hyperliquid to claim the top position among decentralized exchanges by trading volume.
What to Know:
- Aster reported $41.78 billion in 24-hour trading volume on Monday, more than four times Hyperliquid's $9 billion, according to CoinMarketCap data.
- Industry experts estimate wash trading and inflated volumes affect roughly 25% of crypto exchanges, with traders boosting activity to qualify for airdrops or exchanges exaggerating metrics to attract users.
- Open interest figures tell a different story: Hyperliquid leads perpetual DEXs with $14.68 billion, while Aster holds $4.86 billion despite higher trading volumes.
Volume Metrics Draw Scrutiny From Data Provider
DefiLlama founder 0xngmi announced the platform's removal on X, stating that Aster's trading patterns raised red flags. The decision sparked immediate backlash from Aster supporters, who accused the data provider of centralized decision-making. Critics of Aster, however, questioned whether the exchange's rapid ascent reflected genuine market activity.
Aster did not respond to requests for comment. The exchange has allocated 53% of its total token supply to airdrops, which are rolling out in phases, according to company materials.
Greg Magadini, director of derivatives at Amberdata, said volume manipulation remains widespread in crypto markets. "Wash trading and inflated use volumes are currently estimated to be affecting [a quarter] of exchanges today," Magadini told Cointelegraph. He noted that inflation typically stems from two sources: traders artificially boosting activity to earn rewards, and exchanges overstating user engagement to draw legitimate trading.
An X user identified as Dethective found that five wallets generated $85 billion in trading volume on Aster over 30 days.
A separate analysis from Sept. 30 examined the platform's top 10 traders, finding some displayed legitimate patterns while at least two showed signs of Sybil behavior likely aimed at farming airdrop points.
Trading Patterns Reveal Gaps Between Volume and Open Interest
Trading volume can be manipulated through high-frequency bots that open and close positions instantly, leaving little trace of sustained market activity. Open interest presents a more reliable metric because it requires traders to lock collateral and pay funding rates over time, making it harder to fake.
The gap between Aster's trading volume and open interest stands out when compared to competitors. On Monday, CoinMarketCap showed Hyperliquid leading perpetual DEXs with $14.68 billion in open interest, followed by Aster at $4.86 billion and Lighter at $2.08 billion. Those figures contrast sharply with the trading volume rankings, where Aster claimed the top spot.
Some users pointed to Dune Analytics as an alternative to DefiLlama following the delisting. Several Dune dashboards cited in defense of Aster actually pull data from DefiLlama, creating an ironic loop in the debate over data reliability.
0xngmi pushed back against accusations that DefiLlama was paid to remove Aster or unfairly singled out the exchange. "We are not," 0xngmi wrote on X. "We delisted Lighter and many other perp DEXs before because of blatant wash trading."
Understanding Perpetual Futures and Wash Trading
Perpetual futures contracts allow traders to speculate on cryptocurrency prices without expiration dates, unlike traditional futures. These instruments dominate crypto markets, accounting for roughly 80% of total trading volume across the sector, according to CoinGlass data. The high volumes make perpetual exchanges attractive targets for users seeking airdrop rewards, which has led to increased scrutiny of trading metrics.
Wash trading involves executing offsetting buy and sell orders to create the appearance of market activity without changing ownership. Traditional finance bans the practice under securities regulations, but crypto markets lack similar oversight. Detection falls largely to analytics firms that flag suspicious patterns.
"A sign of wash trading is when a large percentage of an exchange's volume consists of identical buy and sell trades occurring within short time frames," Magadini said. "When this behavior repeats across multiple pairs, it's a strong indicator that the volume is being artificially inflated."
The practice gained attention during the non-fungible token boom, when users on marketplace Blur were accused of inflating metrics to qualify for airdrops. The strategy helped Blur briefly surpass OpenSea in reported volume.
DefiLlama tracks protocols across major blockchain networks and serves as one of the most widely used data platforms in decentralized finance. Its decision to remove Aster creates challenges for users seeking reliable information on the exchange's actual market position.
Final Thoughts
The Aster controversy underscores persistent challenges in measuring activity across decentralized markets, where incentive structures can distort reported metrics and confidence in data remains fragile. Trading volume continues to shape perception in crypto even when accuracy remains uncertain, particularly as platforms compete for dominance in perpetual futures, which capture the majority of market activity.