It will not have escaped anyone that China likes to have fun with the cryptocurrency market. This is done by multiplying at very opportune moments the blunt announcements of new prohibitions. A repetition that ends up being tiring. And this should make it clear that these useless declarations are only the tree that hides a will to manipulate that has become crude. However, the consequences remain very real in the face of Chinese investors who do not allow themselves to be manipulated. And it is currently the dYdX platform that is becoming their primary decentralized home.
It is always interesting to see how strong and responsive the cryptocurrency market is. What allows a Bitcoin whose miners are banned from China to move smoothly. Or for investors motivated to circumvent national bans to continue their trading activities. A reality that constitutes the very foundation of this new stateless and elusive economy. This is the great misfortune of regulators, who are powerless in the face of this new kind of specificity.
A desire for control that certainly places China as the worst example of inconsistency and misinformation in the field. This is in the face of a Bitcoin market that is still struggling to absorb official announcements that are more timed than sensible. But faced with which local investors seem to be organizing to escape these bans that are popping up as BTC volatility increases. What appears to be happening at the moment is that the decentralized platform (DEX) dYdX whose volumes are exploding.
It is forbidden to prohibit
Prohibiting rarely achieves the desired result. This seems to be demonstrated by China's recent and yet another condemnation of the cryptocurrency market. A statement that is pushing platforms like the giant Huobi to close the accounts of its Chinese users. But at the same time it is shifting the flow of investors towards more censorship-resistant offers. An ongoing migration explained this weekend by Chinese journalist Colin Wu. And that makes DeFi the new Eldorado for these populations in search of freedom.
" A large number of Chinese users will flock to the DeFi world, and the number of MetaMask and dYdX users will increase significantly. All Chinese communities are discussing how to discover decentralized finance. "- Wu Blockchain
A situation that seems to be confirmed in the figures. Because the dYdX platform has been recording unprecedented volumes for a few days. A boom that saw its volume curve skyrocket to record an all-time high. And it no longer has anything to envy to its centralized competitors (CEX).
The dYdX platform surpasses Coinbase
A record-breaking explosion that was just the subject of a tweet from the founder of dYdX over the weekend. And with a 250% increase in trading volumes. All this with an all-time high of $ 6,5 billion recorded in the last 24 hours. But it was "only" 3,6 billion dollars at the time of Antonio Juliano's publication. And this was already an exceptional fact!
" Five years ago I left Coinbase and eventually founded dYdX. Today, for the first time, the platform does more trading volume than Coinbase. ”- Antonio Juliano
A figure that it is now more than double the $ 3 billion Coinbase SPOT market recorded over the same period. This is an unexpected and unprecedented change for the former employee of this company, the founder of dYdX. This is in the face of a Coinbase platform that is currently facing SEC attacks on its former savings offering associated with the USDC stablecoin.
News that has also just seen the appearance of the DYDX governance token. The latter has just been made available to liquidity providers and other users of this DEX. All this with a retroactive effect that can sometimes lead to big gains (can be claimed , promising). Especially when you consider the over 90% price increase it has suffered since its launch. And a price that is currently around $ 22 at the time of writing. It is clear that this will not immediately bring down the current success of dYdX!
This article is about the current state of cryptocurrencies. It is not intended as a financial investment advice. Any stance taken should be accompanied by personal research and requires crossing several sources before jumping in. DYOR!
