Derivatives DEX dYdX Overtakes Coinbase Spot Market Volume

Full article by Martin Young found here.

Key Points:

• Decentralized derivatives exchange dYdX has seen a dramatic rise in trade activity following news of increasing Chinese crypto prohibitions this year.

• The decentralized exchange now records more trading volume than Coinbase’s spot markets for the first time. According to CoinGecko, dYdX has enabled more than $4.3 billion worth of trades in the past 24 hours compared to Coinbase’s $3.7 billion which is a 15% difference.

• Antonio Juliano, dYdX founder and former Coinbase employee, celebrated the achievement in a tweet on Sunday.

• The volume increase is observed at the same time that Chinese regulation threats have instilled fear in the global crypto sector. On Friday 9/24, The People’s Bank of China called for a ban on all digital currency transactions, stating that cryptocurrencies are “not legal and should not and cannot be used as currency in the market.” This is the 19th occurrence of a China “ban” of crypto since 2009 according to Cointelegraph.

• China based crypto reporter Colin Wu indicated a recent surge in demand for DEXs and other DeFi products in Chinese users as a way to circumvent new restrictions.