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dYdX native token surpasses $3 as it becomes top DEX by daily volume

by CoinNews
written by CoinNews

The DYDX token, the native token of the decentralized trading platform dYdX Chain, is trading above $3 for the first time this year after the platform became the largest DEX by daily volume.

Data from CoinMarketCap shows that the platform’s v4 version, based on the interchain protocol Cosmos, achieved an impressive 24-hour trading volume of nearly $565.85 million. This surpassed Uniswap v3’s Ethereum market, which recorded a volume of $458.46 million in the same timeframe.

When dYdX’s v4 trading activities are broken down, the most traded pairs include Ethereum/USD, Bitcoin/USD, and Solana/USD, with volumes of $155 million, $131 million, and $91 million, respectively. The cumulative open interest for these pairs on the platform reached around $26 million.

The dYdX Foundation highlighted that this milestone was achieved in under two months since the activation of Full Trading. Last November, the platform transitioned from its Beta Stage to Full Trading, raising initial concerns about user and market migration from Ethereum to the new blockchain.

Early indications, however, dismiss these concerns. On Jan. 12, the dYdX Chain reached a remarkable $1 billion milestone in 24-hour trading volume, emphasizing the platform’s robust performance and user adoption.

Notably, dYdX’s v3 Ethereum market, which is still active, also ranks among the top three DEXs. The v3 has had a trading volume of approximately $405.9 million in the past day.

dYdX reclaims $3

DYDX’s notable trading volume milestone propelled its token’s value to over $3 for the first time this year—a remarkable 7% increase within the last 24 hours.

Data from CoinMarketCap highlights a previous dip in the digital asset’s value to $2.36 earlier this year. Nevertheless, it has experienced a consistent upward trend over the past week, boasting a gain exceeding 10%.

Despite this positive momentum, potential challenges lie ahead for the crypto token. Token Unlocks data reveals a looming sell pressure, with approximately $2 million worth of assets poised to be unlocked in the coming week.

 

The post dYdX native token surpasses $3 as it becomes top DEX by daily volume appeared first on CryptoSlate.

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dYdX Founder Skeptical Of Current Bull Run, Cites Low Participation

by CoinNews
written by CoinNews

Taking to X on January 5, Antonio Juliano, the founder of dYdX, a decentralized exchange (DEX), expressed skepticism regarding the current crypto bull run. Juliano attributed the recent price surge to “light trading volumes.” This formation might, despite the overall confidence, not sustain the uptrend.

Founder: This Bull Run Is Different, Participation Is Low

Juliano asserted that a true bull cycle is not defined solely by price action but by participation and community enthusiasm. The founder continued that this “does not seem to be happening yet.”

The founder attributed the lack of widespread adoption to the absence of “groundbreaking” products that have captured the attention of a “broader” audience. However, releasing these “products” to the market could revive activity, driving crypto trading volume. 

Juliano’s comments come ahead of the potential approval of the first spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Among several applicants are Fidelity, Grayscale, and BlackRock. Insiders claim the agency could approve the first product in the coming days. 

A spot Bitcoin ETF may open the floodgates to institutional investors, allowing them to gain exposure to the Bitcoin and crypto market in a regulated manner. As it is currently structured, willing institutions regulated by the SEC can only get exposure through Grayscale’s products, including the GBTC.

Along the same line, some commentators have speculated that the SEC’s approval of a spot Bitcoin ETF could lead to the approval of a spot Ethereum ETF in 2024. An Ethereum Futures ETF was approved in 2023 and is currently available for trading. Even so, the product, like Bitcoin Futures ETFs that are widespread, tracks an Ethereum index price, not the Ethereum spot rate. Even so, whether the SEC will greenlight a spot Ethereum ETF remains to be seen. 

Will A Bitcoin ETF Approval Revive DYDX Demand?

Trading volume is a critical metric for measuring participation and, thus, interest in a particular asset. The higher it is, the more liquid the asset is. 

Depending on the prevailing sentiment, this might support prices or lead to a sell-off. As the crypto community eagerly waits for the SEC to decide on the flagship product, altcoins, including DYDX, have been firm.

Looking at the DYDX price chart in the daily chart, prices are moving horizontally but relatively high from the October 2023 lows. 

DYDX price trending downward on the daily chart | Source: DYDXUSDT on Binance, TradingView
DYDX price trending downward on the daily chart | Source: DYDXUSDT on Binance, TradingView

The coin is up roughly 50% but remains under pressure in the short term. DYDX is down 40% from November 2023 peaks, trading below December 2023 lows in a bearish breakout formation.

Feature image from Canva, chart from TradingView

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.



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dYdX Layer 1 chain launched on Cosmos SDK

by CoinNews
written by CoinNews

Stop scaring users with your bad KYC flows

In a significant development that expands the utility of the DYDX token in the realms of staking, security, and governance, a new dYdX layer 1 chain has launched on mainnet.

This proof-of-stake network, built using the Cosmos SDK, positions DYDX as its Layer 1 token, further cementing its role in the dYdX Chain.

According to information shared with CryptoSlate, the first block of the dYdX Chain mainnet was generated on Oct. 26, marking the beginning of a new era for DYDX.

The dYdX exchange amassed a significant $137M in fees last year, making this proposition particularly enticing for potential validators and stakers.

So, what does the dYdX Chain offer stakeholders?

One key aspect is the expanded utility of the DYDX token. Initially introduced as the governance token of the dYdX Layer 2 protocol on Ethereum (dYdX v3) back in Aug. 2021, the DYDX token’s role has now broadened. The dYdX community voted to adopt DYDX as the Layer 1 token of the dYdX Chain, in addition to establishing a one-way bridge from Ethereum to the dYdX Chain. Wrapped Ethereum DYDX (wethDYDX) will now share the same governance utility as ethDYDX in dYdX v3.

DYDX holders can now choose to serve as validators or delegate their stake to existing validators, in line with standard practices in proof-of-stake networks. By staking their DYDX, holders contribute to securing the network and are rewarded with a proportion of dYdX Chain protocol fees relative to their stake weight.

Further enhancing the security of the dYdX Chain, validators, who have a significant economic stake in the network, are responsible for verifying and confirming transactions.

As more DYDX holders stake their tokens across a diverse range of validators, it becomes increasingly difficult for a coordinated attack to manipulate consensus decisions.

The governance aspect of the dYdX Chain also promises increased accessibility compared to dYdX v3, owing to the standard x/gov module within the Cosmos SDK. All staked DYDX tokens will be eligible for use in dYdX Chain governance, with validators inheriting the voting weight of their stakers unless the latter choose to vote personally.

Posted In: Cosmos, USDC, DeFi

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dYdX launches layer-1 blockchain, validators and stakers set to receive all fees

by CoinNews
written by CoinNews

Decentralized cryptocurrency exchange dYdX has launched its layer-1 blockchain with the creation of its genesis block, which will operate using native DYDX tokens.

The dYdX Chain is set to distribute all fees to validators and stakers in USD Coin (USDC). This includes trading fees denominated in USDC as well as gas fees for DYDX-denominated transactions or USDC-denominated transactions.

The proof-of-stake (PoS) blockchain network was built using Cosmos’ software development kit and makes use of CometBFT as its consensus protocol. Validators stake DYDX in order to secure the blockchain and carry out governance operations of the network.

Antonio Juliano, dYdX’s founder, highlighted that the launch of the dYdX Chain hinged on the likes of Circle and Coinbase launching on Cosmos in time for the creation of its genesis block. Juliano previously described dYdX as an “entirely new blockchain built on Cosmos SDK” and the “first-ever decentralized, off-chain orderbook.” The blockchain is also entirely open-source.

Before the launch of dYdX’s native layer-1 chain, the original DYDX was an ERC-20 token operating on dYdX’s original Ethereum layer-2 protocol. To facilitate the transition to its own layer-1 chain, the dYdX community voted to adopt DYDX as the L1 token of the dYdX Chain, adopt a one-way bridge from Ethereum to the dYdX Chain, and give wrapped Ethereum DYDX (wethDYDX) the same governance utility as ethDYDX in dYdX v3.

As a result of community votes and governance outcomes, the utility of the DYDX token has expanded to be used for staking, securing the network and assisting with governance on the dYdX Chain.

Similar to Ethereum’s transition to PoS, stakers and validators secure and protect the network and receive dYdX protocol feels in proportion to their staked assets. Fees collected by the dYdX Chain protocol are distributed to validators and stakers through the Cosmos distribution module.

An announcement from dYdX highlighted its expectation that the governance on the dYdX chain will be more accessible than its previous, Ethereum-based layer-2 protocol:

“The dYdX Chain does not have the dYdX v3 concept of ‘Proposing Power’; instead, the governance module effectively enables any holder to create a governance proposal with a deposit.”

Provisions to combat spam proposals include minimum deposit thresholds and voting mechanisms with veto powers. Users can only use staked DYDX tokens to participate in chain governance. 

Chain validators will also inherit the voting weight of stakers, unless specific stakers opt to vote on proposals individually.

Magazine: Ethereum restaking: Blockchain innovation or dangerous house of cards?