dYdX Surpasses Uniswap: Now the Largest DEX by Trading Volume

• dYdX Tops Uniswap as the Largest DEX by Daily Trading Volume
• Total Trade Volume Since Launch
• Concerns about Departure from Ethereum
• dYdX's Focus and Transition
• Views from Pantera Capital's Paul Veradittakit
• dYdX's Backers

dYdX Tops Uniswap as the Largest DEX by Daily Trading Volume

dYdX$3.13 -1.20%, a decentralized exchange, has risen to the position of being the largest DEX by daily trading volume, overtaking one of Uniswap's markets. This update comes from current data provided by CoinMarketCap. Having recently made the transition from Ethereum$2,315 -2.42% to Cosmos, the dYdX v4 version recorded a $757 million volume over a 24-hour period. This overshadows the $608 million recorded by Uniswap v3. The dYdX v3 market, still operational, logged $567 million, securing third place.

Total Trade Volume Since Launch

According to dYdX, the total trade volume since the launch of its v4 market stands at $17.8 billion. In 2023, dYdX v3 recorded a total trading volume of over $1 trillion, with several days exceeding a trading volume of $2 billion.

Concerns about Departure from Ethereum

There were initial concerns when dYdX left Ethereum that it might struggle to regain the same level of activity it had had in previous iterations. These fears stemmed from the fact that Ethereum, though a pricier chain, sees significantly more usage than the Cosmos ecosystem. However, dYdX's high trading volumes, now surpassing those of Uniswap and other Ethereum-based exchanges (including dYdX's own v3 DEX), serve as a validation of the company's decision to switch ecosystems.

dYdX's Focus and Transition

dYdX specializes in facilitating the trading of perpetual futures. These are contracts with no expiration date, thereby allowing investors to speculate on the price of an underlying asset, without the physical settlement of goods involved in standard futures trading. The platform has recently transitioned to v4, which it touts as a fully decentralized chain, in contrast to its previous v3 chain, which was not. dYdX has plans to close the v3 on Ethereum, but no firm date has been set for this closure.

Views from Pantera Capital's Paul Veradittakit

Paul Veradittakit from Pantera Capital has noted that users of decentralized finance (DeFi) are in search of platforms that offer high throughput for rapid, continuous trading. He added, high gas fees further compound the issue, diminishing user profits and platform appeal. Veradittakit argued that the transition of dYdX v4 to a standalone blockchain using the Cosmos SDK confronts these challenges by promising significantly improved trading throughput, reduced transaction costs and customized on-chain logic tailored to sophisticated and high-frequency trading needs.

dYdX's Backers

Among the backers of dYdX are renowned names such as Patnera, Paradigm, and Delphi Digital.

Edited by Jonathan Stoker