Decentralized Derivatives Exchange DDX reached a special milestone yesterday. The trading platform saw a trading volume of over $ 4 billion, which is more than its main concentrated competitor. Coinbase! The founder of DydX celebrated the milestone on Twitter yesterday. But where does this rapid increase in trading volume come from?
Antonio Juliano, the founder of DDX, once worked at Coinbase. Definitely makes the milestone even more special. “Today, for the first time, DydX has more trading volume than Coinbase,” said the proud Juliano:
I went 5 years ago Coinbase Eventually dYdX was established
– Antonio | dYdX 🦔 (ntAntonioMJuliano) September 26, 2021
Centralized exchanges such as Binance and Coinbase are the responsibility of a company. They facilitate and maintain a digital marketplace where merchants can do business with each other. Because they operate as a business, they must comply with the laws and regulations applicable in the country in which they operate. The situation is different with decentralized exchange.
Such transfers are not part of a company, but involve smart contracts within a blockchain Ethereum (ETH). As a result, there is no contact point, and merchants do business directly with each other without the need for a platform in between. From there, the trading volume of DideX increases.
In China, all crypto transactions have recently been banned. Therefore the use of crypto and related services such as exchanges is actually prohibited. Chinese blockchain journalist Colin Wu wrote on Twitter yesterday:
“A lot of Chinese users are flocking to the Defy world, and the number of users of Metamask and DYDX is growing exponentially. All Chinese communities are discussing how to use Diffie.
Many Chinese users will flock to the defy world, and the number of users of Metamask and DivyDex will increase exponentially. All Chinese communities discuss how Defi can learn.
– uWuBlockchain September 26, 2021
For some Chinese, defi applications such as decentralized exchanges are a great haven for investing in crypto. The Chinese government can have no influence on this. This is the case with central exchanges. Huobi recently announced its operations in China To close completely.
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