The native token for the decentralized exchange protocol Aster experienced a significant surge, climbing over 30% on Sunday. This sharp increase followed an announcement by Binance co-founder Changpeng “CZ” Zhao, who revealed his personal holdings of over $2.5 million in Aster.
CZ shared details of his wallet holdings in a post on X (formerly Twitter) on Sunday. He stated that he purchased "some Aster today, using my own money on Binance." He further clarified his investment strategy, saying, "I am not a trader. I buy and hold."
Following this announcement, Aster's price rapidly increased from $0.91 to a high of $1.26. At the time of publication, the token was trading at $1.22.
This event mirrors a similar surge experienced by the privacy-focused cryptocurrency Zcash last week. Zcash saw a 30% increase after crypto entrepreneur Arthur Hayes predicted the token would eventually reach $10,000, highlighting the impact of endorsements from influential figures in the cryptocurrency space.
Traders Follow CZ's Lead, Piling into Aster
CZ's post triggered a substantial increase in Aster's trading volume over the preceding 24 hours. Data from the analytics platform DefiLlama indicates that the trading volume rose from $224 million to over $2 billion.
In tandem with its trading volume, Aster's market capitalization also saw considerable growth, expanding from $1.8 billion to over $2.5 billion.
A trader known by the handle "Gold" announced on X that they had initiated a position in Aster immediately after CZ's announcement. They noted that this was the first time CZ had publicly declared buying a token other than BNB, suggesting the significance of this move.
"CZ, the most influential figure in crypto and creator of the largest platform in crypto announced his purchase of ASTER with personal funds. That’s it. Don’t overthink it," the trader commented.
In response to the market reaction, CZ addressed the situation, stating, "damn, I was hoping to buy some more at low prices." He reiterated that he does not "buy tokens often," with the exception of Aster and BNB, which he acquired eight years ago and still holds.
Whales Betting Against the Rally
Despite the positive momentum, not all market participants are convinced the rally will be sustained. Two significant "whales" are reportedly betting against CZ and shorting Aster, anticipating a price decline.
One trader has accumulated a substantial Aster short position amounting to 42.97 million tokens, valued at $52.8 million. This position has a liquidation price of $2, according to blockchain analytics platform Lookonchain.
Another trader has also increased their short position against the rally, holding 15.3 million Aster tokens worth $19.1 million. This position has a liquidation price of $2.1.
CZ's Historical Connection to Aster
CZ has a prior connection to the Aster project, having publicly congratulated the team on X in September. At that time, he expressed his positive view of the project's early stages and encouraged the developers to "keep building." However, questions had previously arisen regarding the extent of CZ's direct involvement with the project.
It is known that CZ's family office, YZi Labs (formerly Binance Labs), invested in Aster's predecessor, Astherus, last year. Aster was formed through a merger between Astherus and the decentralized perpetuals protocol APX Finance in late 2024.
In September, a representative from BNB Chain informed Cointelegraph that Aster had received support from BNB Chain and YZi Labs. However, they did not confirm whether CZ was directly involved in these support initiatives.