dYdX has risen to a new all-time high above $22 as trading volume on the decentralized exchange entered the global top 10.
dYdX has processed more than $4.3 billion in transactions
According to CoinGecko, dYdX has processed more than $5 billion worth of transactions in the last 24 hours, surpassing other exchanges such as BitMEX and Bybit. The decentralized exchange is currently in the top 10 in global derivatives volume, and it will be interesting to see if it can hold that spot.
It’s worth noting that DYdX’s native token (DYDX), which launched a few weeks ago after an airdrop, has also risen in USD value. Similar to most DeFi tokens, DYDX is up almost 30% today to $22 and even hit a new all-time high a few hours ago.
It looks like China is moving to DeFi
The most talked-about theory in the crypto community behind this sudden surge in trading volume and prices is related to China. As reported last week, the world’s most populous country has once again gone after the crypto industry, banning all trading activity within its borders. Shortly after, Colin Wu, a Chinese blockchain journalist, pointed out that all local communities are “discussing how to learn DeFi” and predicted that they will “flood” to decentralized finance.
Chinese journalist Wu Blockchain also showed that other derivatives exchanges are also seeing an increase in Chinese registrations. It looks like Chinese traders do not want to give up their trading opportunities. However, Wu also said that most of the transaction volume on dYdX was caused by farming, “rather than just demand.” In this regard, he reminded his followers that the epoch1 of dYdX transaction mining would end in the next few hours. When epoch0 ended on August 31, the 24-hour transaction volume dropped by 90%, he concluded.