The derivatives exchange dYdX surpassed Coinbase’s spot markets volume amid the Chinese regulatory crack on crypto and it seems that the traders are flocking to the platform over the concerns of a renewed crypto crackdown in China so let’s read more in today’s cryptocurrency news.
The decentralized derivatives exchange dYdX saw a surge in trade activity as the concerns around the renewed Chinese crypto crackdown circulated all year long with the DEX now processing even more volume than Coinbase’s spot markets. As per the data from CoinGecko, DyDX facilitated more than $4.3 billion worth of trades in the past 24-hours and surpassed Coinbase’s $3.7 billion in volume by 15%. DyDX founder and former coinbase employee Antonio Juliano celebrated this milestone in a tweet.
5 years ago I left @coinbase and eventually founded dYdX
— Antonio | dYdX (@AntonioMJuliano) September 26, 2021
The growth for the platform came amid the renewed concerns regarding the Chinese regulatory crackdown that could pose an even bigger issue for the global crypto sector. Beijing intensified the crackdown on crypto by banning all of the digital currency transactions so the People’s Bank of China said that all cryptocurrencies are not legal and should not and cannot be used as currency on the markets. China then caused FUD in the crypto space but it has been doing so since 2009 so it Is not something new that we see on the markets. China-based crypto reporter Colin Wu also noted the surge in demand for decentralized exchanges and stated:
“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.”
In late June, one of china’s biggest crypto exchanges Huobi banned domestic derivatives trading but as of now, the exchange closed its China-based exchange operator at pressure from Beijing which led to halting new registrations for the Chinese users. Over the past six months, dYdx grew by 19,700% in terms of daily exchange trade volumes that were just $22 million at the end of spring. Coinbase on the contrary was quite flat in terms of exchange volume growth over the same period with 6%. the volumes of this exchange also surged to an ATH of $19 billion when the markets were also at their peak.
DYDX offers a range of perpetual contracts on various crypto assets and allows traders to hold leveraged positions without using contracts that have a fixed expiration date. L2Beat which follows the data for layer two protocols reported that dYDX is now second in terms of total market share with 19% and $478 million in total value locked which is an increase of 20% in a week.