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These changes have been associated with speculations over another crackdown on the Chinese crypto market by the government authorities.
dYdX, a leading decentralized exchange, has witnessed a hike in transactions, beating Coinbase in processing trades for the first time ever. In a report from CoinGecko, dYdX has executed over $4.3 Billion worth of trades in the last twenty-four hours. The Ethereum-run exchange has been able to ace Coinbase’s numbers by a massive margin of 15%. This feat has been associated with speculations over another crackdown on the Chinese crypto market by the government authorities.
Antonio Juliano, former Coinbase employee and founder of dYdX, marked the achievement with a tweet on September 27th.
The steep rise in online trade activity can be linked to the concerns over clampdown of the Chinese crypto-market after a statement by the authorities caught the users’ eye. In the statement by the People’s Bank of China, it was asserted that the crypto tokens were not legitimate and would not be used as currency in the country. China has denounced the world of crypto for a very long time and has been a cause of Fear, Uncertainty, and Doubt (FUD) in the crypto space on many distinct occasions.
Colin Wu, a Chinese crypto reporter in a recent post on Twitter, said that people in heavy numbers are trying to gather details about the DeFi world in China. With the increasing interest in Decentralised exchanges among the Chinese users, a hike in the number of users of MetaMask and dYdX can be predicted. Recently in June, Huobi, which was one of the largest Crypto exchanges in China, closed all its operations in the country after a crackdown on the crypto market.
In the previous six months, dYdX has grown its daily exchange trade volume by a massive 19,700%. According to CoinGecko, dYdX only had around $22 Million users in April this year. In contrast to this, Coinbase has not exhibited a significant increase in the exchange volume rise over the past six months. Its user base has only been added by 6%, however, in May this year, Coinbase experienced a skyrocketing surge in the trade exchange volume of $19 billion, when the crypto markets peaked to an all-time high.
It is touted that other Derivatives exchanges like FTX might experience an increase in registrations following the strictness of the Chinese authorities.
dYdX is an exchange that supports perpetual, margin trading, and spot trading, along with lending and borrowing. It runs on smart contracts on the Ethereum network, enabling customers to carry out exchanges with each other without any financial intermediaries.