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dYdX Overtakes Uniswap as Daily Trading Volumes Hit $757 Million

David Pokima
Last updated: | 2 min read
dYdX Overtakes Uniswap as Daily Trading Volumes Hit $757 Million
Image Source: dydx

Decentralized finance (DeFi) platform dYdX market has moved past Uniswap as the largest decentralized cryptocurrency exchange (DEX) by trading volumes.

Recent data from crypto analytics firm Cointelegraph shows an increase in the trading volume of dYdX v4 over Uniswap’s v3 in the last 24 hours.

The Cosmos-based DEX’s v4 recorded $757 million to take the top spot in that metric while Uniswap’s v3 posted $608 million

Others DEX including Jupiter and Orca recorded $368 million and $361 million respectively as the wider community continues to trade sideways.

At press time, dYdX v4 dominates 11% of the market share with 34 markets while Uniswap’s v4 has 8.8% with 814 markets. dYdX v3, Jupiter and Orca come in next with 7.5%, 7.1% and 6.8%.

DeFi volumes rebound

The recent market correction has affected decentralized exchange numbers as the top three DEXes have posted plummeting volumes in the last seven days. However, Jupiter and Curve remain in the green zone.

Despite this, DeFi figures are up from Q4 2023 as they recorded increased activity across the space. The wider asset price plunge and reduced investor sentiment ushered in by the tightening regulations and unfavorable market conditions also led to low decentralized finance volumes.

As a result, daily trading volumes alongside Assets Under Management (AUM) and Total Value Locked (TVL) fell to lows not recorded since 2021 as investor confidence declined.

Volumes plummeted to $44.82 billion in September, the sixth consecutive month of losses per DeFiLlama data.

The last quarter of 2023 marked a turning point in DeFi numbers because of the influx of institutional investment in the market due to anticipation of a spot Bitcoin (BTC) ETF approval by the Securities and Exchange Commission (SEC).

December was the highest in DEX trading volumes with $135.86 billion while the yearly numbers stood at $960 billion. Uniswap still leads in terms of TVL with $3.76 billion while Pancakeswap and Curve recorded $1.65 billion and $1.62 billion respectively.

dYdX focuses on upgrades

dYdX migrated to the Cosmos Network from Ethereum last year. This move sparked concerns by many analysts and community members that it might not pull the same adoption as it did on Ethereum.

The last 24 hours have proved the team’s decision right trading volumes have skyrocketed with more transactions pouring in.

Although the Cosmos Network doesn’t boast Ethereum’s level of adoption, dYdX stresses on perpetual futures allowing traders to speculate the future lives of assets.

Perpetual futures lie at the core of dYdX’s significance. These financial instruments have gained prominence in crypto trading due to their unique characteristics,” said Paul Varadittakit, Managing Partner at Pantera Capital.

The platform recently surpassed $1 trillion in trading volume and incorporates several upgrades.