We are beginning to witness the effect of the Chinese recent crypto trading ban as many decentralized exchanges(DEX) have experienced a surge in their use than their centralized counterparts.
According to data from CoinGecko, dYdX, a leading DEX, has seen the value of its token (DYDX) surge greatly within the last 24hours by 35.9 percent, reaching a new all-time of $22.17. Not only that, its transaction volume within the same period has also usurped that of American-based centralized exchange, Coinbase.
Speaking on the performance, the protocol founder, Antonio Juliano, an ex-employee of Coinbase, said in a tweet that he was excited about the recent growth of the exchange before adding that the event is a historical one.
Hours after the tweet, the dYdX protocol also recorded an increase in its derivatives to $6.3 billion and $3 billion on spot markets.
Other decentralized exchange tokens like UniSwap (UNI) and SushiSwap (SUSHI), also raked in gains of 36 percent and 29 percent, respectively.
The recent spike in the number of these DEXs has been attributed to the recent crackdown by the Chinese government. Colin Wu, a popular crypto reporter had predicted that “a large number of Chinese users will flood into the DeFi world, and the number of users of MetaMask and dYdX will greatly increase. All Chinese communities are discussing how to learn defi.”