According to CoinGecko data, dYdX, the governance token for the dYdX exchange protocol, reached a new all-time high of US$27.86 today.
dYdX is an Ethereum-based decentralized exchange (DEX) that currently supports perpetual contracts, margin trading, spot cryptocurrency trading, as well as lending and borrowing. It is a non-custodial exchange that enables users to trade without the use of middlemen.
dYdX, which is backed by high-profile crypto investors including Andreessen Horowitz, Paradigm, Coinbase CEO Brian Armstrong, and Singapore-based Three Arrows Capital, has seen strong growth this month as a result of the distribution of its dYdX token as rewards to traders and liquidity providers on its platform.
According to dYdX in a blog post earlier this year, its decentralized Perpetuals trading protocol has been especially popular among Asian users, with the majority of signups coming from users in mainland China.
Despite China’s latest crypto crackdown, the dYdX token’s price has risen by 80 percent in the last week as investors and traders shift away from Chinese centralized exchanges and toward DEXes and DeFi. According to Coinmarketcap, dYdX has surpassed Uniswap (v3) to become the top DEX, with a 24-hour trading volume of US$1.98 billion at the time of publication.
On September 27, trading volume on the dYdX exchange surpassed that of all other DEXs combined, according to dYdX founder Antonio Juliano in a tweet. “We did anticipate a local peak in volume in the months following the token launch and at the end of epochs,” Juliano tweeted. “So, while I’m excited about dYdX’s growth, we still have a long way to go — and I’m excited to keep executing.”