Aster Token Jumps After CZ Reveals Multi-Million Dollar Stake
The native token of decentralized exchange protocol Aster surged over 30% on Sunday following an investment disclosure by Binance co-founder Changpeng "CZ" Zhao. The move attracted significant market attention, with Aster breaking new trading activity benchmarks.
CZ's Announcement Triggers Price Surge
On Sunday, CZ shared via X (formerly Twitter) that he now holds more than $2.5 million worth of Aster. He clarified the purchase was made with his own funds on Binance, stating, I am not a trader. I buy and hold. CZ emphasized that such acquisitions are rare, mentioning only similar long-term holdings in Binance Coin (BNB) eight years prior.
His statement contributed to a rapid price jump for Aster, with the token rising from $0.91 to a peak of $1.26, according to CoinGecko. As of publication, Aster was trading at $1.22, sustaining much of its gains. The post also fueled trading activity, with DefiLlama reporting volume swelling from $224 million to over $2 billion within 24 hours.
Market Capitalization and Community Response
Asters market capitalization climbed from $1.8 billion to over $2.5 billion during the period, reflecting growing market interest.
- Multiple traders openly followed CZs lead, including one under the handle Gold, who noted this was CZs first public endorsement of a token purchase outside BNB.
- Despite the bullish sentiment, some large traders, or "whales," have taken short positions against Aster. Lookonchain reported one trader shorted 42.97 million tokens (worth $52.8 million) with a $2 liquidation price, and another shorted 15.3 million tokens (worth $19.1 million) with a $2.11 liquidation price.
Background: Asters Evolution and Institutional Support
Aster emerged from a merger between Astherus and decentralized perpetuals protocol APX Finance in late 2024. Last year, CZs family office, YZi Labsformerly Binance Labsinvested in Astherus, the predecessor to Aster. In September, CZ publicly encouraged Asters development, though official statements did not clarify his direct involvement.Exchanges and networks such as BNB Chain and YZi Labs have also supported Aster.
This wave of activity follows an endorsement-led rally elsewhere in the sector, with privacy-focused cryptocurrency Zcash rising 30% after Arthur Hayes predicted significant price appreciation.
While CZs declaration has boosted Asters profile and trading metrics, market uncertainty remains as traders take positions on both sides of the trade.
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