Decentralized Derivatives Exchange dYdX surpasses Coinbase’s Spot Market Volume amid Chinese Crypto Crackdown

dYdX, a leading decentralized derivatives exchange, has witnessed a massive surge in trade activity as China renews its crackdown on all kinds of cryptocurrency activities. For the first time ever, this decentralized exchange is currently processing more volume of trade than that of the spot markets of Coinbase.

Reports say that dYdX decentralized exchange has facilitated over US$4.3 billion worth of trades in the last 24-hours. This volume of trade on the DEX has surpassed the trade volume of Coinbase in the last 24-hours, which was US$3.7 billion. The trade volume at dYdX is around 15% more than that of Coinbase’s spot market.

This milestone has been celebrated by Antonio Juliano, the founder of dYdX and also ex-employee of Coinbase, by tweeting:

“5 years ago I left @coinbase and eventually founded dYdX

Today, for the first time, @dydxprotocol is doing more trade volume than Coinbase.”

The intensification of the crackdown by the Chinese authorities on cryptocurrency trade has threatened the retail market and many have also resorted to panic selling. All digital currency transactions have been banned by China on September 24, 2021. In a statement, the central bank of China, People's Bank of China, has said that cryptos are “not legal and should not and cannot be used as currency in the market.”

A report on a leading cryptocurrency-related news daily said that a renewed FUD (fear, uncertainty, and doubt) can be seen among the investors after China banned cryptos. Since 2009, the Chinese authorities have caused such FUD moments on 19 separate occasions.

Colin Wu, a well-known China-based cryptocurrency reporter, has said on September 26, 2021, that:

“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.”

dYdX decentralized exchange has increased by around 19,700% in the last 6-months. In terms of daily exchange trade volumes, this decentralized exchange has increased from US$22 million in April 2021 to more than US$4.3 billion in late September 2021.

 

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