ASTER, the native token of the Aster decentralized exchange (DEX), plunged to a new all-time low of $0.55, shedding over 12% in 24 hours. The decline occurred even as the DEX confirmed its Strategic Buyback Reserve program is now live, allocating 20-40% of daily platform fees to automatically repurchase ASTER tokens on-chain from a designated reserve wallet.
The market reaction has been muted, raising questions about the immediate effectiveness of buybacks. Aster's CEO, Leonard, published a lengthy statement addressing community frustration over the token's bleak price performance and responding to allegations of insider trading linked to former Binance CEO Changpeng "CZ" Zhao. Leonard clarified that CZ is only a consultant and that Aster operates independently, dismissing the claims as "factually incorrect" and lacking evidence.
In his statement, the CEO detailed tokenomics, emphasizing that the project's token mechanisms are designed to reward liquidity providers, traders, and long-term holders. He announced an updated, automated daily buyback system using platform fees, with transactions visible on-chain. Leonard revealed that Aster has repurchased 254 million tokens, burned 78 million, and reallocated another 78 million to airdrop reserves, aiming to lower total and circulating supply.
Following the statement and recent buyback activity, ASTER showed signs of short-term recovery, rising 6.11% over 24 hours, though it remains down 9% for the week and 21% for the month. Last Sunday, AsterDex activated its Strategic Reserve Buyback Fund to repurchase 2.9 million ASTER (worth $1.6 million), adding to cumulative buybacks totaling 248 million ASTER (worth approximately $137 million) since October.
The challenge for ASTER is highlighted by competitive volume data. Hyperliquid processed roughly $40.7 billion in weekly volume, compared to ASTER's $31.7 billion and Lighter's $25.3 billion. The CEO acknowledged that while buybacks can support long-term confidence and stabilize token structure, real recovery depends on sustained broader market demand, liquidity, and competitive positioning within the crowded DEX landscape.
