NewsletterDefi 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.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Cardano News: Wirex Partners EMURGO To Launch First Ever ADA Card
- Hyperliquid Rival Lighter Raises $68 Million at $1.5 Billion Valuation
- $37B Bank SoFi Launches Crypto Trading For Retail Customers
- China’s CVERC Accuses U.S. of Stealing 127k Bitcoin Amid Rising Government Crypto Adoption
- Just-In: Startale Launches Super App for Sony’s Soneium Blockchain Ecosystem
- Cardano Price Could Reclaim $0.7 After Key Stakeholders Add $204M in ADA
- Uniswap Price Soars 21% on Fee Switch and Token Burn Proposal— Eyes $15 Target
- Bitcoin Price Eyes Bulls as Crypto Market Structure Bill Draft Finally Drops
- SUI Price Prediction: Analyst Eyes $20 Amid Bluefin Partnership and 2M Token Lending Deal
- HBAR Price Prediction: Analyst Eyes 90% Surge Amid Taker Buy Dominance
- Expert Predicts 200% Shiba Inu Price Surge as Open Interest, Burn Rate Spikes
