The last twenty-four hours have seen several DEX tokens, such as the DYDX soar in prices with some recording massive trading volumes than centralized exchanges. DYDX, a native token of DEX hit a new all-time high in the market, rising by 35.9% to a price of $22.17.
CoinGecko reports that the trading volume executed on the protocol has surpassed that of Coinbase. It is the first time that DEX has outperformed Coinbase since its establishment.
Unlike Coinbase and other centralized exchanges, DEX platforms depend on smart contracts – bits of codes that automatically execute actions at predetermined situations. As a result, Decentralized Exchanges enable trading cryptos without intermediaries.
Founder Praises DYDX’s Growth
In a tweet shared on Sunday, dYdX founder Antonio Juliano expressed his surprise at the recent growth of the exchange. Juliano, a former employee of rival Coinbase, stated in the post that he left Coinbase five years ago to establish dYdX, and dYdX has never initiated more trades than Coinbase until now. Over the past twenty-four hours, trading volumes at the exchange hit $6.3B and $3B in derivatives and spot markets. Coinbase, on the other hand, reached $3B.
Apart from DYDX that made huge gains in the market, UNI and SushiSwap gained 36% and 29%. This is a huge trade, considering the levels these tokens were a day before. Crypto expert Colin Wu assumes that the rise in DEX tokens has something to do with the recent ban on cryptocurrency from the People Bank of China.
On Friday last week, the Chinese government intensified its clampdown on virtual assets by declaring all business transactions in crypto illegal. The PBoC prohibited the trading of cryptos, issuance of new tokens, and overseas exchange services to investors within the jurisdiction of China.
As a result, Chinese crypto traders started to seek alternatives for crypto investments. This might be a good reason for the sudden increase in trade volume and boom in dYdX tokens.
Wu also predicted that many more Chinese crypto users will flood the decentralized finance world, and the number of dYdX users will maximize. According to Wu, the Chinese crypto community is making plans to learn DeFi.
The ban on businesses utilizing cryptocurrency affected all exchanges in the country, including popular exchanges Binance and Huobi. Huobi Global is discussing shutting down operations in China, with the company making plans to clean up existing accounts before the end of 2021. Huobi Global has reiterated that it will protect investors’ investments even as it plans to halt operations in the Asian country.