Aster Price Declines by Over 10% After DefiLlama Removes Perpetuals Data Amid Concerns Over Wash Trading

Aster's price fell significantly following DeFiLlama's decision to delist its perpetual futures data, stemming from concerns regarding suspicious trading practices. Despite isolated trading activity, market caution prevails as traders hold back from opening new positions.

Key Takeaways

Aster's price dropped 16% intraday after DeFiLlama delisted its perpetual futures data.
The token is currently trading at $1.92, down 6% on the day and 21% from its peak of $2.09.
There are concerns about inflating trading volumes leading to the delisting decision.
Trading activity remains high, but many traders choose not to expand their positions.
DeFiLlama's actions have sparked a mixed response in the crypto community regarding data integrity.

Aster experienced a substantial decline of 16% during the trading day after DeFiLlama removed its perpetual futures data due to suspicions of inflated trading volumes. Currently, Aster is trading at $1.92, representing a 6% drop in value. The token dropped to an intraday low of $1.80 after reaching a high of $2.09 earlier in the day, and it now sits at a loss of 21% from its peak of $2.09 recorded on September 24.

The notable decline aligns with DeFiLlama’s choice to delist Aster's perpetual futures data amid concerns about suspicious trading patterns. On the last day, trading volumes reached $1.06 billion, marking a 15.5% increase from the previous day, which underscores continued activity in the market despite the sell-off.

According to Coinglass data, open interest fell by 0.02% to $1.45 billion, while derivatives volume for Aster went up by 1.85% to $4.83 billion. This indicates that while trading activities have increased, traders are hesitant to open new positions, reflecting caution in response to the delisting announcement.

Aster price chart showing decline

DeFiLlama's Delisting Decision Sparks Concerns

On October 5, DeFiLlama’s co-founder, 0xngmi, shared on X that Aster’s trading volumes had begun to closely mimic the trading data from Binance, particularly concerning pairs like XRP/USDT and ETH/USDT. Such a 1:1 correlation is highly unlikely in decentralized finance markets, raising concerns about the accuracy of Aster’s reported trading volumes.

"We've been investigating Aster volumes, and recently their volumes have started mirroring Binance perp volumes almost exactly," noted 0xngmi in his post.

The platform expressed difficulty in verifying lower-level order data, such as details on market makers or order fillers, which hindered its capacity to validate whether the trades were authentic or inflated. Consequently, Aster's perpetual futures data was removed from the DeFiLlama dashboard; however, its spot and total value locked data continues to be listed.

Operating as a decentralized perpetual DEX on the BNB Chain and backed by YZi Labs, Aster has yet to issue a formal response regarding this situation. The delisting occurred after a surge in reported trading volume, which saw Aster's daily perpetual futures volumes peak at $60 billion in late September, temporarily surpassing those of Hyperliquid.

Reactions from the community on X have been mixed, with some praising DeFiLlama's move as a protection of data integrity, while others have accused it of bias. 0xngmi clarified that there were no conflicts of interest at play, asserting that neither he nor the platform has any financial stakes in Aster or its competitor Hyperliquid.

Technical Analysis of Aster's Price

Analyzing Aster’s price movements, it recently tested the lower Bollinger Band at $1.75 and is now stabilizing around $1.89, as indicated by the one-hour chart. Following a sharp decline, prices are now close to the mid-band level at $1.88, suggesting some temporary stabilization.

Aster price drops over 10% after DefiLlama delists perpetuals data amid wash trading concerns - 1

According to the relative strength index, which currently sits at 47.3, the market does not appear to be either oversold or overbought, indicating neutral momentum. Aster might retest the upper band at around $2.01 to $2.05, provided it holds above the $1.92 resistance. Conversely, should the price fall below $1.75, it could trend toward $1.65, a crucial support level noted in late September.

The current price structure hints at a modest recovery attempt; however, volume spikes highlight ongoing volatility. Until there is enhanced market confidence or transparency regarding on-chain data, Aster may encounter ongoing challenges despite experiencing potential relief rallies.