dYdX Surpasses Uniswap: A Dark Outlook for Bitcoin

• Latest Crypto Market Trends
• Shifts in Decentralized Exchanges
• Political Influence in Crypto
• Chart of The Day

Latest Crypto Market Trends

The persistent headwinds facing bitcoin (BTC) could lead to a further drop in its price, even amidst the initial success of several U.S.-based spot exchange-traded funds (ETFs). Following the highly anticipated ETF listing last week, bitcoin prices dipped by as much as 15%. This drop has been attributed, in part, to outflows from Grayscale's Bitcoin$42,260 -0.64% Trust product. ETF volume data collected from BlackRock (BLK), Fidelity, and Bitwise collectively surpassed $500 million earlier this week, signaling strong demand from regulated funds and professional traders. Concurrently, Coinbase (COIN), the custodian for numerous ETF providers, experienced record-high OTC desk transfer volumes. However, analysts at CryptoQuant suggest that several on-chain indicators point towards a continued price correction for bitcoin and a potential absence of a new rally.

Shifts in Decentralized Exchanges

Decentralized exchange dYdX$3.13 -1.20%, following its recent migration from Ethereum$2,315 -2.42% to Cosmos, has usurped one of Uniswap's markets as the largest DEX by daily trading volume, as per data from CoinMarketCap. The Cosmos-based v4 version of dYdX reported a 24-hour volume of $757 million, surpassing Uniswap v3's $608 million. dYdX's v3 market, which remains operational, recorded $567 million. From its launch, dYdX's v4 market has accumulated a total trade volume of $17.8 billion. In 2023, dYdX's v3 market registered a total trading volume of over $1 trillion, with multiple days exceeding $2 billion.

Political Influence in Crypto

Former President Donald Trump, a front-runner in the Republican leadership race, has pledged to prohibit the establishment of a central bank digital currency (CBDC) during a campaign event in New Hampshire. Trump, standing alongside crypto-friendly former candidate Vivek Ramaswamy who recently suspended his campaign, vowed to protect freedom by preventing the inception of such a currency. He stated that a CBDC would give the federal government unfettered control over citizens' money and potentially lead to untraceable confiscations.

Chart of The Day

Edited by Jonathan Stoker