By
Svetlana Soroka
April 24th, 2024
PERP and DYDX are the two DeFi tokens leading the current boom in the crypto market. PERP token has recorded a 55% gain in the last 24 hours, taking its trading price to $17, according to data from Messari.
Chinese investors have been left out of the recent DEX tokens boom in wake of the country’s crypto crackdown. The People’s Bank of China (PBoC) on September 24 released a list of prohibited crypto-related activities which included trading and token issuance, alongside barring overseas exchanges from providing services to Chinese investors in mainland China. China’s latest step to crack down on crypto saw many of its investors lose out on the native tokens of decentralized trading platforms surge.
Reports suggest that Binance and Huobi Global, the two largest crypto exchanges in terms of trading volumes, have restricted business with Chinese customers after the latest announcement from the PBoC, with Huobi planning to clean up existing accounts by the end of the year.
PERP and DYDX are the two DEX tokens leading the current boom in the crypto market. PERP token has recorded a 55% gain in the last 24 hours, taking its trading price to $17, according to data from Messari. PERP is the utility token facilitating and incentivizing the decentralized governance of the Perpetual Protocol.
DYDX, the governance token of decentralized exchange (DEX) dYdX, has also seen an unprecedented rise of 35.9% over the past 24 hours, hitting a new all-time high of $22.17. Trading volumes facilitated by the dYdX DEX have also surpassed those on America’s largest centralized exchange, Coinbase. DEXes allows investors to trade cryptocurrencies without intermediaries as they rely on smart contracts, which are bits of code that auto-execute at predetermined circumstances unlike that of centralized exchanges.
Perpetual Protocol was in 2018 as “Strike” and is a decentralized exchange (DEX) designed for leverage trading, short positions, and low levels of slippage. It incorporates a virtually automated market maker (vAMM) and collateralization vault to settle trades and enable trading in perpetual contracts, which are futures without expiry.
Since its rebranding with a new name and the mainnet in December 2020, the Perpetual Protocol has caught the interest of the crypto market and many investors as its trading volume have been on a steady rise. China’s latest ‘blanket ban’ has spiked activities on the protocol as derivatives DEX dYdx has recorded a trading volume of over $4.3 billion in the past 24 hours, surpassing the $3.7 billion of America’s largest and Nasdaq-listed centralized crypto exchange, Coinbase.
Data from CoinGecko has revealed that Perpetual Protocol has facilitated $258 million worth of trades so far today, a number which is 10 times higher from Sunday’s tally of $16.16 million.
Coins including SushiSwap, Uniswap, dYdX, and Curve, all associated with other decentralized exchanges have risen between 22% to 35% in the past 24 hours, outperforming two of the crypto market’s giants, Bitcoin and Ether by a significant margin.