Dydx, a decentralized exchange, has seen its trading volumes explode in the last few days, surpassing other recognized decentralized exchanges like Uniswap and Pancakeswap. Some experts have actually recommended this may be the outcome of the current Chinese cryptocurrency ban triggering China-based users to move their trading activities to these platforms.
Dydx Bursts With Activity
Dydx, a decentralized exchange that, unlike other similar platforms, offers an order book, has been bustling with activity during the last few days. The activity in the decentralized exchange has actually grown immensely, with volumes exceeding those of its decentralized competitors such as Uniswap and Pancakeswap. In fact, On September 26, dydx trading volumes surpassed those of Coinbase, achieving a big milestone for the platform.
According to Antonio Juliano, Dydx’s creator, the exchange managed to move $3.68 billion on September 26, while Coinbase moved $3.61 billion on the very same day. Dydx was originally based on Ethereum, but it has since included an L2 layer called Starkware, which allows for much cheaper fees offering the same functionality to its users. This has actually likewise triggered the exchange to end up being popular, now being more enticing to daily traders.
Chinese Exodus to Decentralized Exchanges
Due to the incredible growth in Dydx’s trading volumes, some analysts have declared that this might be the result of Chinese traders moving to decentralized alternatives after being abandoned by their centralized counterparts. This desertion was encouraged by the current cryptocurrency ban that required Asian exchanges to stop using services to mainland China-based users.
Decentralized exchanges are the best option for Chinese traders right now because they don’t enforce KYC policies for their customers. This indicates that traders can continue to keep holding and exchanging their properties without the danger of federal government intervention, and now, this characteristic is crucial for Chinese users.
The value of dydx, the governance token of the exchange, has also been on a constant rise since it was awarded to its traders earlier this month. The token has actually gotten more than 100% in simply a month, and its cost now hovers around the $24 mark. This means that the airdrop offered to traders is now worth more than double when it was awarded, with some traders now having obtained $900K worth of dydx.
