dYdX surpassed Uniswap in daily trading volumes

Decentralized exchange (DEX) dYdX has overtaken the sector's long-time leader, Uniswap, to become the largest 24-hour trading platform.

This achievement is especially significant after dYdX moved from the Ethereum blockchain to the Cosmos ecosystem.

dYdX passed Uniswap following the Cosmos transition

dYdX, a crypto derivatives platform, has announced its decision to migrate from an Ethereum-based layer-2 network to an independent blockchain in the Cosmos ecosystem as part of its version 4(v4) update. This move aims to decentralize and facilitate trade flow.

We are excited to announce that dYdX V4 will be developed as an autonomous cosmos-based blockchain! 🔗🎉

— dYdX (@dYdX) June 22, 2022

Despite Ethereum's large user base and high transaction costs, dYdX migrated to Cosmos, and recent trading data indicates a successful outcome. dYdX's v4 achieved a 24-hour trading volume of $757 million, surpassing Uniswap v3's record of $608 million, according to CoinMarketCap data.

Meanwhile, the DX v3 market on Ethereum, which is still active, recorded $567 million in the same period, taking third place. Since the launch of dYdX v4, the accumulated trading volume has reached $17.8 billion.

This follows a strong performance in 2023 when the DEX's v3 market on Ethereum exceeded $1 trillion in transaction volume. The DIDX chain recently hit a milestone, distributing over $3 million in prizes.

The DIDX chain has officially distributed a prize worth more than 3 million dollars 🙋🏽

dYdX Chain Highlights 🤔🖥️ 18.86B Total Trade Volume👑 dYdX Chain #1 DEX in the World

— dYdX Foundation 🦔 (@dydxfoundation) January 18, 2024

With a community of over 9,300 stakeholders, the platform currently boasts an annual percentage rate (APR) of 14.28%, and 80 million DIDX tokens are held at stake to ensure the safety of the chain. Additionally, more than 2 million dYdX tokens have been distributed for trading rewards, and 468 million ethDYDX have been successfully linked to DADX.

DIDX's focus on fixed futures and DeFi appeal

dYdX differentiates itself by focusing on perpetual futures trading, which allows investors to speculate on the price movement of an asset without physical settlement. The innovative approach fits well with the preferences of modern investors in the decentralized finance (DeFi) sector.

According to Paul Veraditakit of Pantera Capital, users in the DeFi space are looking for platforms that can handle more transactions quickly and efficiently. Veradatakit also noted that the problem of high transaction fees is compounded, which eats away at the interests of users and reduces the attractiveness of the platform.

Cosmos notes that migrating DIDX v4 to a single blockchain directly addresses these challenges, promising improved trading performance, reduced transaction costs, and custom on-chain logic for complex and high-frequency trading needs.