dYdX becomes the largest DEX by trading volume, surpassing Uniswap | CoinDesk JAPAN

dYdX, a decentralized exchange (DEX) that recently migrated from Ethereum to Cosmos blockchain, has surpassed its versions of Uniswap to become the largest DEX by daily trading volume, according to data from CoinMarketCap. .

Maintained strong performance even after transition to Cosmos

Cosmos-based dYdX v4 recorded a trading volume of $757 million (approximately 109.765 billion yen, equivalent to 145 yen to the dollar) in 24 hours, surpassing Uniswap v3’s trading volume of $608 million. dYdX v3, which was not migrated to Cosmos and is still in operation, ranks third with $567 million.

According to dYdX, v4’s total trading volume since launch is $17.8 billion. In 2023, the total trading volume of dYdX v3 will exceed $1 trillion, and there were several days when the trading volume exceeded $2 billion.

When dYdX left the Ethereum blockchain, there were concerns that it would struggle to return to the same level of trading volume it achieved with v3. Although Ethereum is a more expensive chain, it has significantly higher usage than the Cosmos ecosystem. Currently, dYdX has higher trading volume than Uniswap and other Ethereum-based exchanges (including dYdx’s own v3), which serves as a kind of validation of dYdx’s decision to switch ecosystems. Maybe.

dYdX focuses on facilitating the trading of perpetual futures contracts. dYdX recently transitioned to v4, a term coined by dYdX that is described as a “fully decentralized” chain. dYdX says that this was not the case in the previous v3. dYdX stated that v3 of the Ethereum blockchain will eventually be shut down, but no firm date for closure has been set.

Ethereum’s high gas costs are a problem

Decentralized finance (DeFi) users are looking for platforms that offer “high throughput for rapid and continuous trading,” said Paul Veradittakit of Pantera Capital. It is said that there is “High gas prices further complicate the problem, reducing user benefits and the platform’s attractiveness,” Beladittakit said.

Beradittakit said that migrating dYdX v4 to the Cosmos blockchain using the Cosmos SDK “significantly increases transaction throughput, reduces transaction costs, and provides a customized platform for advanced and high-frequency trading needs.” He pointed out that the company will address the issue head-on by “promising chain logic.”

dYdX is backed by Pantera Capital, Paradigm, Delphi Digital and others.

｜Translation and editing: Rinan Hayashi
｜Image: CoinMarketCap
｜Original text: dYdX Tops Uniswap as Largest DEX by Volume