Dydx Trading Volumes Explode After Latest Chinese Crypto Ban
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 analysts have suggested this might be the result of the latest Chinese cryptocurrency ban causing 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 grown enormously, with volumes surpassing those of its decentralized rivals 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 founder, 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 much cheaper fees offering the same functionality to its users. This has also caused the exchange to become popular, now being more appealing to everyday 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 abandonment was motivated by the recent cryptocurrency ban that forced Asian exchanges to stop offering 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 means that traders can continue to keep holding and exchanging their assets without the risk of government intervention, and now, this trait is key 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 gained more than 100% in just a month, and its price 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.
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