China’s restriction involving cryptoassets transactions has boosted the Decentralized Finance (DeFi) market. Recently, a decentralized exchange (DEX) recorded a daily transaction volume higher than Coinbase’s trading.
At the same time that it had a daily volume of almost US$ 3.7 billion recorded last Monday (27), DEX DydX saw its currency DYDX soar 35% in the market.
Created by former Coinbase employee Antonio Juliano, this is the first time the decentralized exchange has surpassed the daily trading volume of Coinbase, one of the world’s largest exchanges.
Decentralized Exchange grows and surpasses Coinbase
The cryptoasset market has seen impressive growth for DEX DydX, which on Monday (27) ranked among the top exchanges by trading volume in the market.
According to a tweet from the creator of DydX, the platform had a trading volume of US$ 3.68 billion in just 24 hours. With this daily movement, DEX surpassed the volume recorded by Coinbase in the same period.
In total, Coinbase had a volume of US$ 3.61 billion in the same period. According to Antonio Juliano, this is the first time DydX has surpassed Coinbase in daily trading volume.
“Five years ago I left Coinbase and founded DyDX. Today, for the first time, DyDX is having more trading volume than Coinbase”.
China restrains transactions with cryptoassets
Recently, China decided to restrain transactions involving the buying and selling of cryptoasset in the country. In a move against the market, the People’s Bank of China (Central Bank) issued a statement regarding the restriction on September 24, 2021.
As a result, the crypto market plummeted shortly after China’s announcement, with the price of bitcoin threatening to lose the critical US$ 40,000 support.
In addition to influencing the devaluation of major cryptoassets in the past week, China’s restriction already affects centralized companies like Huobi. The exchange announced that it will close all user accounts from the Asian country.
On the other hand, the Chinese restriction cannot directly affect platforms like DydX, a decentralized exchange.
DydX confirms transactions through intermediary-free smart contracts executed directly among users without the need for centralized control to operate. This facility has allowed the platform to reach almost US$ 3.7 billion in transactions, surpassing traditional exchanges in the market such as Coinbase.