The China FUD slashed many token’s prices in recent times, however, some remained distinct from the crowd. IT appeared that DyDx just utilized the reverse impact of the FUD to strengthen its roots in the market. But what factors led the DyDx price jump and what could be the future plan of action, would be interesting to witness.
The price initiated gaining bullish momentum soon after China banned the crypto transactions. The DyDx DEX also soared with huge volume that surpassed the giants like Uniswap and Coinbase. And hence showcased a shift of focus of the traders from the other platforms towards DyDx.
It is to be noticed that only 55 million tokens or 6% of the total supply are in circulation and hence the increase in circulation may add up huge pressure on the price. And eventually, the price could propel to new highs. Moreover, despite the volume is slightly less than of the previous day, it still smashed new ATH in early trading hours.
Currently, the price is following an upward trajectory, however, slight dumps or corrections are included within the rally. The price has recorded a couple of red candles but they were not so strong to drag the price to a large extent. Yet if the price slips below the trend line, then the support levels at $21.7 could hold tightly.
A rebound can be expected at this point else the next level to hold would be in between $17.3 and $18.6. These levels are considered as strong support levels and a dip further could challenge the double-digit figure of the asset. However, if the DyDx price rebounds at its initial support levels, then the possibility of forming higher highs is more. And eventually, the path towards $50 could also be with reduced hurdles.
Finance Redefined: dYdX milestone and $1M DeFi bounty, Sept. 24–Oct. 1
Welcome to the latest edition of Cointelegraph’s decentralized finance (DeFi) newsletter.
DYdX surpassed Coinbase in daily trading volume for the first time this week. Read on to discover why this was a seminal moment for the project’s founder.
What you’re about to read is the concise version of this newsletter. For the full breakdown of DeFi’s developments over the last week — released with more anticipation than a layer-two airdrop — register below.
dYdX surpasses Coinbase in trading volume for first time
Decentralized derivatives exchange dYdX has risen to prominence through 2021 as an alternative to the hegemony and governmental transparency of centralized exchanges. It was revealed that dYdX surpassed the daily trading volume of crypto exchange stalwart Coinbase for the first time in its history.
Analytical data from CoinGecko revealed that dYdX facilitated in excess of $4.3 billion trading activity on Sept. 26, eclipsing Coinbase’s output of $3.7 billion by almost 15%.
This marks a full-circle moment for dYdX founder Antonio Juliano, who previously applied his trade at Coinbase. He recalled a time when he first spoke to CEO Brian Armstrong about his ambitions to launch a company in the future, receiving the response, “That’s awesome, let’s see how we can help you do that.”
Juliano celebrated the landmark in a series of tweets last Sunday:
5 years ago I left @coinbase and eventually founded dYdX
Today, for the first time, @dydxprotocol is doing more trade volume than Coinbase 😯📈 pic.twitter.com/QzoKAUpH29— Antonio | dYdX 🦔 (@AntonioMJuliano) September 26, 2021
Cardano to enable new DeFi stablecoin with Coti
It was announced this week that Cardano’s payment gateway provider, Coti, is expected to issue a new stablecoin called Djed to support the ecosystem’s ambitions in ensuring price stability and increasing the transparency of gas fees on the network.
According to Djed’s research paper released in August, its stablecoin protocol will behave like an “autonomous bank that buys and sells stablecoins for a price in a range that is pegged to a target price.” The stablecoin will operate by maintaining a reserve of base coins while minting and burning various other stable assets and reserve coins.
Cardano founder Charles Hoskinson believes that the Djed stablecoin could be revolutionary for the crypto space, as it appeals to an “entirely new audience at a time when the industry is already experiencing astronomical growth.”
White hat hacker paid DeFi’s largest reported bounty fee
Automated market maker protocol Belt Finance offered the largest reported bounty in the history of DeFi this week to a white hat hacker responsible for discovering a bug that, if exploited, could have exposed $10 million in assets.
For his good-willed efforts, industry programmer Alexander Schlindwein received a generous compensation of $1.05 million, $1 million of which was granted by software security platform Immunefi, while the additional $50,000 was offered by Binance Smart Chain’s Priority One program upon which Belt Finance is built.
Cointelegraph spoke to Schlindwein for an exclusive insight into the timeline of events, as well as the wider implications of bounty programs on DeFi’s security landscape:
“I am strongly convinced of the importance of bug bounties and initiatives such as bounty funds. Bug bounties are the last line of defense should an issue slip through the overlying layers with the potential to prevent a devastating hack while instead seriously fixing the issue and compensating the finder.”
Schlindwein concluded, “It’s great to see hundreds of projects launching their bug bounty nowadays, which will certainly bring DeFi security forward in the long run.”
Analytical data reveals that DeFi’s total value locked has increased 15.34% across the week to a figure of $121.41 billion.
Analytical data on Cointelegraph Markets and TradingView reveals that DeFi’s top 50 tokens by market capitalization largely struggledacrossthe last seven days, with a handful of prominent exceptions.
DYDX secured the podium’s top spot with an impressive 82.39%. UNI came a respectable second with 23.88%, while PERP bagged third with 21.45%. Fourth and fifth place were claimed by FTM and XTZ with 11.62% and 8.67%, respectively.
Extra DeFi stories from the week:
- Crypto baffles mainstream media, but should blockchain advocates care?
- DeFi and Web 3.0: Unleashing creative juices with decentralized finance
- Ethereum alternatives and layer-one solutions see steady gains in September
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us again next Friday for more stories, insights and education in this dynamically evolving ecosystem.
dYdX: decentralized exchange attracts Chinese traders and trades $10 billion in the last 24 hours
While the tightening of cryptocurrencies in China is detrimental to most of the crypto industry, decentralized exchanges (DEX) are seizing the momentum to attract Chinese investors.
dYdX is by far the DEX that is taking the most advantage and earlier this Tuesday (28), saw its volume soar 117% in just 24 hours, according to data from CoinMarketCap.
Throughout the day, the exchange’s volume continued to grow and topped the $10 billion mark for the first time in history.
By moving such a large volume of cryptocurrencies, dYdX comes out ahead of the industry’s heavyweights with Coinbase and FTX, which register a daily volume of US$ 3 billion and US$ 2.2 billion, respectively.
In fact, dYdX had already left Coinbase behind in volume on Sunday (26), which was reason for celebration for Antonio Juliano, the creator of DEX.
“5 years ago I left @coinbase to eventually found dYdX. Today, for the first time,@dydxprotocol is doing a greater volume of trades than Coinbase”, celebrated on twitter.
At this rate, dYdX also outperforms the most popular DEXs on the market, recording almost 10 times more volume than Uniswap, based on the Ethereum network, and PancakeSwap from Binance Smart Chain.
Why is dYdX so popular?
dYdX volume has soared in recent days as a reflection of the new wave of repression by the Chinese government against the crypto sector, which has come to understand that any person or company that facilitates trading in bitcoin and other cryptocurrencies in the country is breaking the law.
The tightening of restrictions led a number of companies in the sector, including the centralized exchanges that still operated OTC desks in the country, to further limit the services offered to the Chinese. As a result, this audience started to look for alternatives in the market, such as dYdX .
In the market for two years, dYdX is a decentralized exchange, meaning that it does not take custody of users’ funds and executes trades through smart contracts based on Ethereum. To escape the high mains gas rates, dYdX uses StarkWare’s second layer solution (layer 2).
dYdX seems to attract the Chinese especially by offering derivatives available on its platform. Unlike other DEXs like Uniswap and PancakeSwap, dYdX not only focuses on spot trading and allows its clients to trade perpetual futures contracts, with leverage of up to 25 times.
On the official website, dYdX explains that its focus is on offering perpetual contracts, with spot and margin trading being secondary products, which may be discontinued in the future.
DYDX, the exchange’s governance cryptocurrency, took advantage of the broker’s growing popularity to rise 77% in the past seven days, according to CoinMarketCap.
The push was able to drive the currency to a new price record of $22.85 on Monday (27). In the last 24 hours, DYDX has retreated to $21.20, but is still up 9% for the day.
Lark Davis Says DYDX Price Is Facing a Parabolic Surge
- Lark Davis says that DYDX Price is “going nut” at this time.
- Davis’ analysis is in line with how DYDX price is currently soaring.
- Presently, the DYDX price is trading at $20.67.
Popular crypto trader and on-chain analyst Lark Davis has expressed his view about how DYDX price is performing these days. In line with this, Davis just tweeted that the DYDX price is under a parabolic phase and it is even “going nut” in the crypto market.
Leading to this price sensation, DYDX’s price has surged up overwhelmingly by 35.50%. Even, aside from DYDX’s current state in price, crypto is still showing a flourishing sign, indicating that it’s ever-ready to go bullish than what we are seeing now.
Adding more, the DYDX price is currently trading at $20.67 with a 24-hour trading volume of $1,750,642,226. Also, it has a market capitalization of $1,151,077,628 at the time of writing, according to CoinMarketCap data.
Going back to Davis’ tweet, the crypto twitter netizens reacted happily. Many told Davis to also pay further attention to other altcoins that are also doing well. Not only this, but other people also asked if the DYDX current surge could increase buyers’ interest.
Furthermore, many also urged Davis to highlight what was actually behind the sudden rise in the DYDX Price.