Dydx trading volumes explode after China’s latest crypto ban – bitcoin news
Dydx, a decentralized exchange, has seen its trading volumes explode in recent days, overtaking other recognized decentralized exchanges like Uniswap and Pancakeswap. Some analysts have suggested that this could be the result of the latest Chinese cryptocurrency ban that caused users based in China to move their trading activities to these platforms.
Dydx bursts into activity
Dydx, a decentralized exchange which, unlike other similar platforms, offers an order book, has seen intense activity in recent days. Activity in the decentralized exchange has grown tremendously, with volumes exceeding those of its decentralized rivals such as Uniswap and Pancakeswap. In fact, on September 26th, dydx’s trading volumes exceeded those of Coinbase, making a significant milestone for the platform.
According to Antonio Juliano, founder of Dydx, the exchange managed to move $ 3.68 billion on September 26, while Coinbase moved $ 3.61 billion on the same day. Dydx was originally based on Ethereum, but it has since included an L2 layer called Starkware, which allows for a much cheaper fee providing the same functionality to its users. It also made the exchange popular, now being more attractive to everyday traders.
Chinese exodus towards decentralized exchanges
Due to Dydx’s incredible growth in trading volumes, some analysts have said this may be the result of Chinese traders shifting to decentralized alternatives after being abandoned by their centralized counterparts. This abandonment was prompted by the recent cryptocurrency ban which forced Asian exchanges to stop offering services to users based in mainland China.
Decentralized exchanges are currently the best option for Chinese traders as they do not apply KYC policies to their customers. This means that traders can continue to hold and trade their assets without the risk of government intervention, and now this trait is essential for Chinese users.
The value of dydx, the exchange’s governance token, has also been steadily increasing since it was awarded to its traders earlier this month. The token has gained over 100% in just one month, and its price is now hovering around $ 24. This means the drop offered to traders is now worth more than double when awarded, with some traders now having got $ 900,000 in dydx.
What do you think of the recent explosion in dydx trading volumes? Tell us in the comments section below.
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