Singapore -by the time Token2049 will be redered next year, the headline -gravically decentralized fairs such as hyperliquid and Aster may no longer dominate, Stephan Lutz said in an interview in an interview in an interview, warning that their stimulans are widely tolerated.
A competitive battle has recently broken out in the eternal decentralized Exchange (Perp Dex) sector, with emerging platforms such as Aster and later who significantly challenges the former dominance of Hyperliquid.
Last week aster hyperliquid surpassed in terms of 24-hour trade volume. This has fueled a race among competitors to launch new DEXs, with the aim of catching the market share in this growing area.
In this context, Justin Sun announced the launch of a new Dex on the Token2049 conference in Singapore, which indicates further intensification in this rapidly evolving landscape.
However, the excitement is probably of short duration, according to Lutz, who called Dexs as inherent pump and dump schemes.
“Dexs are about giving access to markets without intermediaries, and they build up a momentum by strongly trusting stimuli, it is actually an inherent pump and -dump schedule,” Lutz said. “I don’t mean that in a bad way or as a scam. It is all public, you know what you are starting.”
He compared the stimulation programs with an advertising flash that watch out for attention and explains that these platforms hook users with token rewards and costs in the reimbursement and then depend on that Feedbackklus to act.
“The question is, what lingers?” He went on.
This tree and -bothered cadence not only make it difficult for DEXs to maintain liquidity in the long term, he added, it also means that retail traders chase transformed returns to expose themselves to considerable volatility and risk.
Unlike the Churn he sees in Defi, Lutz said that the largest centralized fairs, led by Coinbase and his colleagues, are well positioned to drive out these cycles and stay dominant long after the latest Dex incentive have disappeared.
He added that the goal of Bitmex is to spread both worlds and noted that although he sees Defi and it personally embraces it as a crypto resident, settings cannot communicate with it as they can with a centralized exchange.
Bitmex’s Tokyo Pivot
The Japanese capital, not Hong Kong or Singapore, is where the trade volume is, according to Lutz.
In August, the exchange officially moved its data infrastructure to AWS Tokyo from AWS Dublin in a movement aimed at stimulating liquidity. The switch has yielded the desired results and underlines the attractiveness of Japan.
“We were earlier in Ireland … but it became increasingly difficult because in fact everyone is only the American players in the data centers of Tokyo,” he said.
He said that the switch has increased the liquidity by about 80% in the most important BitMex contracts and up to 400% in some Altcoin markets, he gained at the market maker intervention, but to reduce the latency by being in Tokyo.
Looking at the next crypto cycle
Lutz predicts that the next crypto cycle looks considerably different from previous badrs and busts.
With a larger institutional participation, he said, BTC could behave more as a ‘real asset’, so that the dramatic peaks and valleys have defined that earlier runs smoothed out.
“I expect that with a larger adoption we will see longer plateau phases than in earlier cycles; the market will still follow the same rules and characteristics, but with a lower volatility because it is a truly active embraced by the rich of the world,” he said.
The Bitcoin market volatility has fallen considerably since the debut of Spot ETFs in the US last year. In addition, the implicit volatility indices of BTC have steadily evolved into VIX-like structures, which are moved in the opposite direction of spot prices.
All this means that, although some of these new DEXs, offering eye-reinforcement-from which Lutz believes that it will not last until next year will not be fireworks for BTC in store. Instead, it will look like any other advanced activa class with gradual ups and downs while the market cycle continues.
