Singapore – By the time of token2049 recruit next year, the headline today – focusing decentralized exchanges such as Hyperliquid and Aster may no longer dominate, Bitmex CEO Stephan Lutz said in CoinDesk in an interview, warning that their incentive – Heavy business models are too caring to endure.
Recently, a competitive battle exploded in the ongoing decentralized exchange sector (Perp Dex), with emerging platforms such as Aster and lighter significantly challenging the former hyperliquid dominance.
Last week, Aster exceeded Hyperliquid in terms of 24 -hour trading volume. This has brought a race to competitors to launch new DEXs, aimed at gaining market sharing in this expanding field.
In this context, Justin Sun announced the launch of a new Dex at the token2049 conference in Singapore, which signed a further strengthening the rapid emerging scene.
The excitement, however, is likely to be short-lived, according to Lutz, called Dex as a natural pump-and-dump scheme.
“Dexs are about providing access to markets without intermediaries, and they build momentum by relying on incentives, this is usually a natural pump – and – dump scheme,” Lutz said. “I didn’t mean to be in a bad way or as a scam. All public, you know what you’re coming in.”
He likens incentive programs to an advertising blitz that pays for attention, explaining that these platforms are attached to users with token rewards and payback rebates and then depending on that feedback to keep people trading.
“The question is, what are the sticks?” He continued.
This Boom – and – Bust Cadence not only make it difficult for Dexs to maintain liquidity in the long run, he added, it also means that retail businessmen pursuing outsized produce expose themselves to great volatility and danger.
In contrast to the Churn he sees on Defi, Lutz said the largest centralized exchange, led by Coinbase and its peers, has been properly positioned to ride these cycles and remain dominant for a long time after the latest Dex incentives.
He added that the purpose of Bitmex was to traverse both worlds, noticing that as he saw the Defi enduring and embracing it personally as a native crypto, institutions could not interact with it as they could in a centralized exchange.
The Tokyo Pivot of Bitmex
The Japanese capital, not in Hong Kong or Singapore, is where the trading is, according to Lutz.
In August, the exchange officially transferred its data infrastructure to AWS Tokyo from AWS Dublin in a motion aimed at boosting liquidity. The switch delivered the desired results, emphasizing Japan’s attractiveness.
“We had been in Ireland before … but it became more difficult because everyone except US players were in Tokyo’s data centers,” he said.
He said the switch has strengthened liquidity by approximately 80% of Bitmex’s major contracts and up to 400% in some Altcoin markets, acquired that he does not associate not market-making intervention but to reduce latency by being in Tokyo.
Looking at the next crypto cycle
Lutz predicts the next crypto cycle will look different from previous booms and busts.
Through more institutional participation, he said, the BTC can act like a “real possession,” which eliminates dramatic peaks and troughs that have specified past running.
“I hope that in the larger adoption we will see longer cliff phases than previous cycles; the market will still follow the same policies and characteristics, but with lower volatility as it becomes a real possession of the rich in the world,” he said.
Volatility in the Bitcoin market has refused significantly since the US ETFS debut in the US last year. Moreover, BTC’s indicated volatility indices continue to sprout in structures such as VIX, The move in the opposite direction of place prices.
All of this means that even some of the new DEX, who offer eye-watering leverage-Lutz believes that will not last until next year-no fireworks in store for BTC. Instead, it will look like any other sophisticated class of possession with a gradual uprising as the market cycle continues.
