“Five years ago, I left Coinbase and founded dYdX. Today, for the first time, the protocol is doing more trading volume than Coinbase”. Wrote the founder of the platform, a former employee, Antonio Juliano.
According to CoinGecko, over the past 24 hours, the volume of derivatives trading on dYdX amounted to $5.99 billion. The corresponding indicator of the Coinbase spot markets is $3.49 billion.
Chinese communities are learning DeFi
A sharp jump in trading volumes on the derivatives platform occurred against the background of the recent negative statement of the People’s Bank of China regarding cryptocurrencies and stablecoins.
Journalist Colin Wu, after another criticism of digital assets from the regulator, predicted: “A large number of Chinese users will flood into the world of DeFi, and the number of MetaMask and dYdX users will greatly increase. All Chinese communities are discussing how to learn DeFi.”
In 2017, Coinbase CEO Brian Armstrong invested in dYdX as part of a pre-financing round. Later, in 2020, the DeFi platform launched three perpetual contracts for Chainlink (LINK), Ethereum (ETH) and Bitcoin (BTC). Perpetual contracts are a type of futures, but do not have a fixed expiration date.
The volatility of cryptocurrency markets
Recall that in June 2021, the DeFi platform raised $65 million. It was headed by the venture capital company Paradigm, according to a press release.
a16z, Polychain Capital, Three Arrows Capital, Wintermute also participated in the round. Among the new strategic investors are QCP Capital, CMS Holdings, CMT Digital, HashKey, Electric Capital, Delphi Digital and others.
“The additional capital will allow us to maintain long-term prospects and significantly improve liquidity on the dYdX exchange due to the volatility of the cryptocurrency markets,” the report said.