USD1 bets on the derivatives track, with Aster challenging USDT

Trump Jr.'s Traffic Pushes USD1 into the Derivatives Arena

Donald Trump Jr. posted a viral tweet, not only announcing the launch of USD1 perpetual contracts on Aster but also shifting USD1 from being a “Trump-related payment token” to a new role as “derivative collateral.” With approximately $1.3 billion in daily trading volume and $1.5 billion in TVL, Aster provides fundamental support beyond political topics for this launch. The tweet received over 144,000 views and 662 likes within a few hours, with more than 15 top crypto accounts sharing and spreading it.

Zach Witkoff clearly stated: “Full-stack integration” and lower fees (0.5bps for order takers vs. 4bps for USDT) are the key points. On-chain data shows Aster’s nominal trading volume recently surged to $3.7 billion, indicating this launch has the potential to attract real liquidity. However, to be honest, USD1’s 24-hour trading volume is only about $1.1 billion, while its market cap is $4.5 billion—Twitter buzz is clearly overestimated, and the true impact might only be visible after 6 months.

• High engagement posts from Eric Trump (139K views) and Aster’s official account (92K views) have created a divergence in market narratives: bulls emphasize “deep liquidity,” while skeptics point out that trading hasn’t expanded proportionally.
• Bloomingbit and Phemex have confirmed incentives of 2.5 million WLFI tokens per month, but Aster’s token and on-chain metrics show only moderate improvement—currently more driven by narrative, with data yet to materialize.
• Stablecoins face regulatory pressure. Linking USD1 to Trump-related entities could be a boost during favorable policies, but could backfire when political tensions rise.

My view is: Derivative liquidity is built gradually, not skyrocketed overnight by celebrity tweets. The path USDT took to dominance is a good example. From a trading perspective, I focus more on whether ASTER’s multi-chain deployment and valuation offer good value.

Incentives look strong, but adoption curve is key

After deeper analysis, differences emerge. Some KOLs praise “USD1 surpassing payments and moving into derivatives collateral,” but on-chain data shows recent peaks are mainly driven by overall market activity, not USD1 alone. The question is: if USD1 can match USDT in collateral and settlement functions, plus incentives, can it gradually chip away at USDT’s DeFi market share? In the Aster scenario, an 87.5% reduction in fees makes this structurally feasible.

Short-term “takeoff” isn’t the focus; sustained trading activity is. USD1 maintains a 0.08% price stability over 24 hours, without volatility spillover.

Bottom line: This launch lends credibility to USD1’s derivative pathway, increasing the medium- to long-term threat to USDT. But the “liquidity flywheel” hasn’t been priced in yet. Beneficiaries will be builders and patient holders; short-term traders chasing volume are more likely to be reversed.

Conclusion: From a narrative perspective, it’s not too late to enter now, but the best window for speculation has passed. The real advantage belongs to builders and long-term holders, not to momentum traders or quick profits.