Leading decentralized exchange (DEX) dYdX has recently seen a strong surge in trading volume. Popular crypto analyst Colin Wu reported that the dYDx transaction volumes in the last 24 hours surpassed 4.28 billion, surpassing the leading crypto exchange Coinbase for the first time.
According to CoinMarketCap data, the dYdX transaction volume in the past 24 hours has reached 4.28 billion, surpassing Coinbase’s 3.79 billion for the first time. pic.twitter.com/PR7PX6UbbF
— Wu Blockchain (@WuBlockchain) September 27, 2021
This comes amid the latest Chinese crackdown last week and a large rush of Chinese investors moving to decentralized exchanges. Last Saturday, September 25, Colin Wu also reported about the same. the analyst noted:
A large number of Chinese users will flood into the DeFi world, and the number of users of MetaMask and dYdX will greatly increase. All Chinese communities are discussing how to learn defi.
Amid the recent rally, the dYdX native cryptocurrency has surged 34% today. As of press time, DYDX is trading at a price of $20.55 and a market cap of $1.14 billion.
Transaction Volume Driven By Farming
However, Colin Wu states that a large number of the transaction volumes are coming from DYDX farming and are not driven by real demand. He notes that these volumes have been supported by the epoch1 developments taking on the platform. However, investors need to be careful at this point as Wu notes:
The epoch1 of dYdX transaction mining will end tomorrow at 15:00 (UTC). Within one week after epoch0 on August 31, the 24-hour transaction volume of dYdX dropped by 90%.
But the daily exchange-traded volumes on dYdX have been on the rise over the last six months. Since April 2021, the trading volumes on dYdX have surged by nearly 20,000% which shows a massive demand for decentralized exchanges.
Amid the recent China ban, crypto exchange Huobi had to suspend the derivatives trading services for Chinese investors. These regulatory actions are like to push more investors towards adopting decentralized platforms. China’s crackdown on crypto is nothing new and has been going on since 2017. Investor participation in crypto continues to grow despite it.
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