Aster extended its decline and slipped close to a fresh low near $0.61. At the time of writing, the token was trading around $0.63, with a 24-hour loss of more than 11%, according to CoinMarketCap. The move has drawn attention because it came shortly after the project announced a strategic buyback plan that some investors had expected to support price stability.
Falling platform fees have become the key concern
The main issue behind the sell-off is not the idea of buybacks itself, but how that system is funded. Aster said it would use 20% to 40% of daily platform fees to repurchase ASTER tokens. In theory, that can reduce circulating supply and reinforce long-term tokenomics. The market reaction has been much less positive.
Traders are focused on the model’s dependence on trading activity. If platform volume slows, fee income falls, and the buyback engine loses force. On-chain data already shows that Aster DEX fees have dropped sharply in recent weeks. That has raised doubts about whether the project can sustain such an aggressive repurchase and burn approach under weaker conditions. The team has confirmed that automatic repurchases from its reserve wallet have started, yet the token kept falling.
Higher buyback allocation is being read as a strain, not a cushion
A large buyback commitment would usually be seen as supportive. Here, it has also introduced a second concern. Some investors worry that directing as much as 40% of platform fees into buybacks could put pressure on the wider ecosystem if revenue keeps shrinking. Instead of restoring confidence, the policy has opened questions around liquidity and operating stability.
The broader market has made that anxiety worse. Bitcoin is under selling pressure, and smaller altcoins have been hit harder. The Altcoin Season Index has dropped sharply, pointing to capital moving away from lower-cap assets. Derivatives liquidations have also increased, especially across altcoins, which tends to intensify downside moves when sentiment turns defensive.
Break below $0.72 accelerated the technical damage
The chart weakened materially after Aster lost support at $0.72. That level mattered, and once it broke, stop-loss orders were triggered quickly. The RSI is now near 33, a level associated with oversold conditions. That reading may signal stretched selling, but it does not guarantee a rebound.
The next support area being watched is around $0.66. If that level fails, the token could revisit the $0.60 zone, and a break there could expose a move toward $0.55. On the upside, if Aster reclaims $0.68, the price could stage a short relief rally back toward $0.72.
Recovery depends on revenue, user activity, and defense of $0.60
Based on the source material, the buyback program can only offer meaningful support if trading activity remains strong enough to keep fee income stable. The article identifies several conditions the market is watching: steady platform revenue, stronger user engagement on Aster DEX, better performance across the broader crypto market, and a successful defense of the $0.60 level.
Until those conditions improve, the current decline is being treated as a warning sign rather than a clean recovery signal. The project has shown commitment to its token model, but in a weak market, a fee-dependent buyback plan has not been enough to stop the slide.