BitMEX CEO Warns of Short-Lived Hype in Crypto Perp DEX Sector

The frenzy around decentralized exchanges offering perpetual contracts may be fleeting, according to BitMEX CEO Stephan Lutz. Speaking at Token2049 in Singapore, Lutz cautioned that platforms like Hyperliquid and Aster—currently dominating headlines—could lose their luster by next year's conference. Their reliance on incentive-heavy models creates a fragile ecosystem, he argued.

Recent weeks have seen fierce competition in the perp DEX space, with newcomers like Aster and Lighter challenging Hyperliquid's dominance. Last week, Aster briefly overtook Hyperliquid in 24-hour trading volume, sparking a rush of new entrants. Justin Sun's announcement of another DEX launch at Token2049 underscores the sector's rapid evolution.

Lutz likened the dynamics to pump-and-dump schemes, though not necessarily fraudulent ones. "DEXs eliminate intermediaries but build momentum through incentives—it's an inherent cycle," he said. The model resembles an advertising blitz: tokens bait users, but sustainability remains questionable.