BitMEX CEO: The crypto perpetual DEX boom driven by incentives may soon fade

ChainCatcher news, according to CoinDesk, BitMEX CEO Stephan Lutz stated in an interview that the current boom of perpetual DEXs (PerpDEX) led by platforms like Aster and Hyperliquid may not last until next year. He believes that these platforms' business models, driven by high incentives, are too fragile to endure.

Lutz compared the current DEX incentive model to an "inherent pump-and-dump scheme," where platforms attract users through token rewards and fee rebates, but this model struggles to retain liquidity in the long term and poses significant risks to retail traders chasing high returns. He believes that, in contrast, large centralized exchanges (CEX) like Coinbase are better positioned to weather market cycles and maintain dominance, while BitMEX aims to "bridge the worlds of centralized and decentralized."

Recently, the competition in the perpetual DEX space has intensified, with emerging platforms like Aster surpassing the former leader Hyperliquid in 24-hour trading volume.