dYdX Surpasses Uniswap to Become the Largest DEX by Trading Volume

dYdX, the decentralized exchange (DEX) that transitioned to the Cosmos blockchain last year, has reached a trading volume of $758 million in the past 24 hours.

After moving from Ethereum to the Cosmos blockchain infrastructure, dYdX has officially surpassed Uniswap to become the largest DEX by daily trading volume, based on data from CoinMarketCap and confirmation from the project on the evening of January 16.

In the past 24 hours, dYdX v4 reached a trading volume of $758 million. In the same timeframe, Uniswap v3 attracted $606 million in trading volume.

According to dYdX, the total volume on v4 since its launch is approximately $17.8 billion. In 2023, dYdX v3 recorded a total volume exceeding $1 trillion, with many days surpassing $2 billion in trading volume.

In terms of trading volume, dYdX v4 is now leading the pack, outshining Uniswap and many other Ethereum-based DEXs, including dYdX v3. This demonstrates that the company's decision to transition its ecosystem is proving to be successful.

Top 10 DEXs by Trading Volume. Source: CoinMarketCap

After undergoing five testnets over the course of a year, dYdX launched the mainnet for its v4 upgrade and the Cosmos SDK-based blockchain dYdX Chain at the end of November 2023. This move is seen as a significant step for the DEX to separate itself from Ethereum, develop its own layer-1, and transition DYDX into the native token of its chain.

The blockchain is also running a 6-month "Incentive Program," allocating over $20 million in DYDX from the treasury as rewards for early users.

Previously, there were concerns about dYdX's departure from Ethereum, with skeptics suggesting that the platform might struggle to replicate its past successes. Despite Ethereum's high transaction fees, it has considerably higher traffic than Cosmos.

As of now, dYdX v3 on Ethereum has not announced a closure date and operates alongside v4 on Cosmos.

Paul Veradittakit, a representative from Pantera Capital, noted that decentralized finance (DeFi) users are always seeking platforms that can offer high throughput and fast, continuous transactions. High gas fees complicate matters further by reducing user profits and the platform's appeal.

Veradittakit stated that dYdX's transition to an independent blockchain using Cosmos SDK addresses these challenges. dYdX is backed by Pantera, Paradigm, and Delphi Digital.

The price of DYDX has seen a slight 3% increase over the past 24 hours, contrary to the overall market trend. At the time of reporting, the price is trending towards $3.

1-hour chart of the DYDX/USDT pair on Binance as of 08:55 AM, January 18, 2024