BitMEX Moves Data Infrastructure to Tokyo, Boosts Liquidity by 80%
Decentralized Exchanges Face Challenges
- BitMEX CEO Stephan Lutz suggests current decentralized exchanges (DEXs) like Hyperliquid and Aster may struggle to maintain dominance due to fragile incentive-heavy models.
- Aster recently surpassed Hyperliquid in 24-hour trading volume, intensifying competition among emerging DEXs.
- Justin Sun announced the launch of a new DEX at the Token2049 conference in Singapore, indicating further competition in the sector.
- Lutz views DEXs as "pump-and-dump schemes" driven by incentives like token rewards and fee rebates, raising concerns about long-term liquidity retention and trader risk.
- Larger centralized exchanges like Coinbase are seen as more stable and capable of enduring market cycles.
BitMEX Tokyo Move Boosts Liquidity
- BitMEX relocated its data infrastructure from AWS Dublin to AWS Tokyo to enhance liquidity.
- The move resulted in an 80% increase in main contract liquidity and up to 400% in some altcoin markets, attributed to reduced latency.
Future Crypto Cycle Expectations
- Lutz predicts the next crypto cycle will feature less volatility with increased institutional participation, making Bitcoin behave more like a "real asset."
- The introduction of spot ETFs in the U.S. has contributed to reduced Bitcoin market volatility, with implied volatility indices evolving into VIX-like structures.
- Despite high leverage offerings in new DEXs, Lutz expects BTC to stabilize and resemble other sophisticated asset classes over time.