Aster's Surge Shakes Hyperliquid's Crypto Dominance

Massive liquidations across crypto markets have intensified, with Ethereum (ETH) emerging as one of the most affected assets. The sell-off has been driven by a combination of macroeconomic pressures, shifting institutional sentiment, and fierce competition in the decentralized perpetuals market, where platforms like Aster and Lighter are challenging Hyperliquid’s dominance.

Hyperliquid, once commanding 71% of the on-chain perpetuals market in May 2025, now holds just 38% of trading volumes, according to Dune Analytics user @uwusanauwutitle1^[1]. Rivals such as Binance Labs-backed Aster and a16z-backed Lighter have surged to 14.9% and 16.8% market shares, respectively, fueled by aggressive tokenomics, multi-chain strategies, and leverage offerings. Aster’s native token, ASTER, has soared over 2,100% in a week, reaching $1.97, while Hyperliquid’s HYPE token has fallen nearly 15% in the same periodtitle4^[4].

Ethereum’s struggles reflect broader market weakness. Institutional and whale activity has shifted from staking to centralized exchanges, increasing supply and exacerbating selling pressure. Ethereum’s price has dropped 14.51% weekly, trading at $43.10 as of September 24, 2025title5^[5]. Network fees have plummeted to 0.17 Gwei, signaling subdued on-chain activity. Meanwhile, Ethereum’s options market shows mixed signals: call options are regaining premiums, but hedging demand has collapsed, suggesting uncertainty about near-term directiontitle6^[6].

The on-chain perpetuals market itself has seen a dramatic shift. Aster’s 24-hour trading volume surpassed Hyperliquid’s for the first time, reaching $24.7 billion compared to Hyperliquid’s $10.7 billiontitle2^[2]. This surge was driven by Binance Chain’s gas fee reductions and CZ’s endorsement, which boosted Aster’s total value locked (TVL) to $1.85 billion—a 196% increase from $625 million in a weektitle9^[8]. Hyperliquid, however, retains a larger liquidity pool, with $300 billion in 30-day volumes versus Aster’s $27 billiontitle4^[4].

The broader crypto market remains under pressure. Bitcoin (BTC) fell to $114,000 after the Fed’s 25-basis-point rate cut, with weekly trading volumes dropping 23% to $43.7 billiontitle6^[6]. Altcoin momentum, as measured by the Altseason Index, has collapsed from 100 to 67, reflecting capital flight to Bitcoin. Analysts attribute the selloff to profit-taking, inflation concerns, and waning institutional ETF inflows.

Hyperliquid’s challenges extend beyond market share. A major whale holding 1.8 million HYPE tokens (worth $80 million) recently sold 201,900 tokens ($8.93 million) to Aster, signaling diversification amid volatilitytitle5^[5]. This move aligns with broader uncertainty about Hyperliquid’s ability to retain users as competitors innovate with yield-bearing collateral and real-world asset (RWA) perpetuals.

Despite the bearish backdrop, some analysts see potential for a rebound. Ethereum’s price appears near a critical support level at $42.89, with technical indicators suggesting a possible rally to $55 if buyers hold. However, a breakdown below $39.85 could trigger deeper declinestitle5^[5]. For Hyperliquid, its 97% fee allocation to a buyback fund and lean tokenomics offer a structural advantage, but regulatory risks and competition from multi-chain rivals remain significant headwinds.