The Aster token experienced a nearly 10% price drop following rumors that Binance founder Changpeng Zhao dumped over 34 million coins, but Zhao debunked the claims on X, calling them fake news. Despite confirmations from on-chain analysts like Lookonchain, the token slipped below $1.00 amid broader market pressures.
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Aster token price drop triggered by false CZ wallet sale rumors, leading to 7% decline in 24 hours.
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On-chain data confirms no CZ involvement, yet selling pressure persists below key support levels.
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Aster’s DEX TVL surpasses $1.5 billion with $71 billion in weekly perpetual volume, showing strong protocol fundamentals despite token volatility.
Aster token price drop hits 10% on CZ dump rumors—debunked by Binance founder. Explore impacts on DEX trading and recovery signals. Stay informed on crypto news for smart investing.
What Caused the Recent Aster Token Price Drop?
Aster token price drop of nearly 10% stemmed from unverified rumors on X suggesting that a wallet linked to Binance founder Changpeng Zhao sold over 34 million ASTER tokens, valued at around $30 million. Although Zhao quickly refuted the claims in a public post, urging followers to unfollow sources of fake news, and on-chain tracker Lookonchain confirmed no connection to him, the misinformation fueled immediate selling pressure. The token, central to the Aster decentralized exchange (DEX), has since consolidated around $0.94 after breaching its $1.00 support level.
How Are CZ Aster Rumors Impacting Market Sentiment?
The rumors originated from a post by crypto investor FarzadXBT on X, claiming a “CZ Linked wallet” offloaded significant ASTER holdings, sparking widespread FUD (fear, uncertainty, and doubt) among traders. Market watchers note that while Zhao’s denial and Lookonchain’s verification should have quelled the panic, the Aster token price drop persisted, with the asset down 7% in the last 24 hours and trading 18.8% below its 20-day exponential moving average per Coingecko data from early Asian sessions.
Experts from the crypto analytics community, including those at DefiLlama, emphasize that such misinformation can amplify volatility in emerging DEX tokens like ASTER. “False narratives tied to high-profile figures like CZ often lead to knee-jerk reactions, but fundamentals like TVL growth provide a more reliable gauge,” said a DeFi analyst quoted in recent market reports. Short sentences highlight the breach: ASTER flipped $1.00 from support to resistance. This bearish signal could push prices lower if volumes don’t rebound. Traders are monitoring for a close above $1.00 as a reversal cue, with current levels hovering at $0.93—the lower end of its consolidation range.
Beyond the rumors, ASTER has struggled to surpass $1.20 throughout the week, indicating underlying challenges. Trading volumes cooled after the initial sell-off, suggesting investors are pausing for clearer signals. Data from Coingecko shows the token 15.7% off its weekly high, underscoring the freefall mode described by observers.
4. Fake news!
Unfollow the guys posting fake news.
— CZ 🔶 BNB (@cz_binance) October 31, 2025
Zhao’s direct response on X aimed to stem the tide, but profit-taking continued unabated. This incident highlights the fragility of crypto markets to social media-driven narratives, even when swiftly debunked.
Frequently Asked Questions
What is the Aster token and why did its price drop recently?
The Aster token powers the Aster DEX, a decentralized platform for perpetual and spot trading. Its recent price drop of almost 10% was triggered by debunked rumors of a large sale by a CZ-linked wallet, leading to panic selling despite confirmations otherwise. The token now trades around $0.94, down 7% in 24 hours per market trackers.
Is Aster’s DEX still viable despite the token price bloodbath?
Yes, Aster’s fundamentals remain robust. Total value locked has climbed to $1.577 billion, with $131 million in fees collected last month and over $71 billion in weekly perpetual volume, according to DefiLlama analytics. This growth signals strong user adoption even as the token faces short-term volatility.
Key Takeaways
- Misinformation drives volatility: Rumors about CZ selling ASTER caused a 10% drop, but quick debunking couldn’t fully halt the decline.
- Strong protocol metrics: DEX TVL exceeds $1.5 billion, with $71 billion in perpetual volume underscoring Aster’s appeal to traders.
- Watch for recovery: Traders should monitor for a close above $1.00 to signal potential reversal; ongoing buybacks may support prices.
Conclusion
The Aster token price drop, exacerbated by CZ Aster rumors now confirmed as fake news, serves as a reminder of social media’s outsized influence on crypto markets. Despite the turbulence, Aster’s DEX continues to thrive with TVL over $1.5 billion and robust trading volumes, positioning it well for future growth. As the buyback program progresses on-chain, investors may find opportunities in this resilient protocol—keep an eye on key levels for signs of stabilization and consider diversifying amid ongoing volatility.
The decentralized exchange Aster announced updates to its token buyback initiative, conducting all Series 3 operations entirely on-chain to enhance transparency. According to the official statement, the program targets repurchasing 70% to 80% of trading fees generated during this period, with daily executions underway. This move aims to bolster token value amid market challenges.
Market data from DefiLlama further illustrates Aster’s strength: spot exchange transactions reached $618 million in the week, complementing the perpetual side. These figures, tracked through Friday, demonstrate sustained activity even as the token navigates its price drop.
Analysts advise caution, noting that while the CZ incident was resolved, broader sentiment and technical indicators like the $1.00 resistance will dictate near-term trajectory. For those engaged in DeFi, Aster’s metrics suggest long-term potential beyond transient rumors.
