Derivatives DEX dYdX beats out Coinbase by volume amid China FUD

Decentralized derivatives exchange dYdX has seen a massive surge in trade volume as concerns surrounding a renewed Chinese crypto crackdown have circulated this year, with the DEX now processing more volume than Coinbase for the first time.

Derivatives DEX dYdX beats out Coinbase by volume amid China FUD

dYdX has facilitated more than $4.3 billion worth of trades in the past 24-hours, beating out Coinbase $3.7 billion in volume by nearly 15%, according to data from CoinGecko

Antonio Juliano, the founder of DYdX and former Coinbase employee, celebrated the milestone in a Sept. 27 tweet.

The surging growth for dYdX comes amid renewed concerns regarding the threat heavy-handed Chinese regulation could pose for the global crypto sector. On Sept. 24, Beijing intensified its crackdown on crypto-assets by banning all digital currency transactions. The People's Bank of China said in a statement that cryptocurrencies are not legal and should not and cannot be used as currency in the market.

dYdX offers a range of perpetual contracts on various crypto assets allowing traders to hold leveraged positions without using contracts with a fixed expiration date. The derivatives exchange has grown by 19,700% over the past 6 months in terms of daily exchange trade volumes which were just $22 million at the end of April.

In September 2019, Coinbase invested 1 million USDC stablecoins into dYdX in what it called a USDC Bootstrap Fund. In June this year, dYdX raised $65 million in a Series C funding round led by venture fund Paradigm.

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