Defi Update: dYdX Trading Volume Nosedives by 80% in 24-Hours, Here’s Why
The trading volume of popular Dex protocol dYdX nosedived by 80% overnight, dropping from a weekly high of $11.06 million to the current volume of $1.90 million. The volume of dYdX spiked over the weekend in the wake of the Chinese crypto ban, where many Chinese traders turned to defi as centralized exchanges such as Huobi and Binance shut their doors as per government orders.
The main reason for the decline of trading volume is being attributed to the end of the Epoch1 transition mining program on September 28. The Epoch1 program offered mining rewards making it quite lucrative and the China ban only helped the trading volume towards the end of the Epoch1 program. China announced a new set of regulatory guidelines to crack down on all kinds of crypto-related activities on Friday. Market analysts believe Chinese traders rushed to Defi market to trade cryptocurrency.
On September 28, the last day of Epoch1, the trading volume of dYdX reached a whopping $11 billion just half an hour before the end. The decline in trading volume is quite similar to the end of Epoch0 where transaction volume fell by 90% within one week of its end.
In the past 24 hours, dYdX transaction volume exceeded a shocking 11 billion, but epoch1 still has half an hour to end. https://t.co/fnoO8Zx3Zv
— Wu Blockchain (@WuBlockchain) September 28, 2021
dYdX Price Climbs to ATH
The price of the Defi token however weathered the massive decline in trading volume and currently trading in green. dYdX price registered a new ATH of $27.78 earlier today and was trading at $26.5 with a 3% increase in price over the past 24-hours.
Over the past week in the last few days of Epoch1, dYdX trading volume not just surpassed the top Dex Uniswap but also centralized exchanges such as Coinbase and Binance.
Defi market overall has defied the market trend over the past week, when most of the cryptocurrencies were consolidating and recovering from the weekend crash, many Defi tokens including Uniswap and Avalanche ($AVAX) surged in double digits.
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