The decentralized exchange (DEX) dYdX now has more trading volume than Coinbase and has risen to become the largest DEX in the crypto space almost overnight – how did that succeed?
dYdX is the largest decentralized exchange for derivatives trading on the ETH blockchain. Users can trade cryptocurrencies leveraged on dYdX without having to trust a centralized authority. It is also possible to lend assets on the DEX at a variable interest rate that depends on the supply and demand on the platform.
Just a few weeks ago, dYdX distributed 75,000,000 DYDX tokens, worth almost 1.9 billion US dollars at the time of going to press, to former users of the exchange via Airdrop. Many of these users received tens of thousands of US dollars, while US citizens received nothing thanks to the SEC.
dYdX overtakes Coinbase and Uniswap
Since the airdrop, the derivatives exchange has fought its way to the top of the DEX space. Just yesterday, dYdX recorded a Trading volume of over $ 9.1 billion. Uniswap (UNI) processed just $ 1.2 billion in the same period. In addition, dYdX was able to increase the trading volume of Coinbase surpass. Antionio Juliano, founder of dYdX and former Coinbase-Employees, took this as an opportunity to tweet and celebrated the milestone on Twitter.
Experts | suspectthat the crypto crackdown in China in particular ensured that the trading volume of dYdX rose so sharply. More and more Chinese traders would therefore be looking for censorship-resistant trading platforms on which they can trade crypto currencies despite the ban. In one Tweet on Sunday, China-based crypto reporter Colin Wu noted that the demand for decentralized exchanges and other DeFi products among Chinese users has risen sharply lately, stating:
A large number of Chinese users will flock to the DeFi world and the number of users of MetaMask and dYdX will increase sharply. The entire Chinese crypto community now wants to understand and learn DeFi.
Strong growth
dYdX has seen impressive growth this year. The derivatives exchange was able to increase its log income by over 330 percent in the last 30 days alone.
In the same period, the DYDX token has more than doubled from under $ 10 to just under $ 25 at the time of going to press. In addition, the Total Value Locked (TVL) includes the derivatives exchange loudly L2beat now over 500 million US dollars. As a result, dYdX has risen to one of the largest crypto exchanges in the world almost overnight.
The derivatives exchange’s market capitalization is over $ 24.2 billion. For comparison, Uniswap has a “diluted” market cap of $ 23.1 billion.
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