Recently, dYdX, a decentralized derivatives platform, has established itself as a major player on Ethereum, particularly with its bitcoin perpetual swap products, which have seen a surge in trading volume.
Last month, dYdX introduced its innovative system, revealing its initial product offering. Perpetual Contract Markets The debut was marked by a perpetual swap contract for bitcoin, providing traders the ability to leverage up to 10x in the BTC-USDC marketplace.
The introduction of the bitcoin perpetual swap on May 13th, 2020, led to a noticeable uptick in trading activities on dYdX. As emphasized by the team during the launch:
“dYdX is crafting a top-tier BTC trading product, targeted not only at DeFi enthusiasts but the broader crypto community. Key trading necessities like liquidity, sophisticated functions, and fund safety make dYdX a prime choice for BTC trading.”
Just as projected, then, the dYdX platform has recently witnessed a significant increase in trading activity centered on its BTC offerings. As a result, more users are exploring the platform's distinctive features.
dYdX Volume Surges
On Tuesday, May 19th, dYdX achieved a phenomenal trading milestone, surpassing $17 million USD in daily volume, boasting more volume than Uniswap, which managed over $10 million that day.
What's remarkable is dYdX's daily volume surge to the extent that it even outpaced Uniswap, which has mostly been the dominant force in recent data.
Therefore, the fact that dYdX is attracting more substantial trading activities compared to Uniswap suggests the platform has desirable features like its new trustless bitcoin perpetual swap.
However, this success is not entirely unexpected by dYdX's team. As the founder, Antonio Juliano, pointed out earlier this year:
“Perpetuals present an effortless and efficient method for users to capitalize on long or short leverage positions. This tendency will likely extend to DeFi, quickly overshadowing all existing spot trading volumes.”
If this progression continues, it would be an additional advantage for dYdX, already one of the most lucrative DeFi platforms on Ethereum. If dYdX continues to unveil innovative derivatives unlike traditional options, it could further expand its user base.
BitMEX Down
dYdX operates as a decentralized application, functioning around-the-clock as long as Ethereum is operational, providing unparalleled uptime.
Consequently, dYdX is constantly available to users worldwide, unlike many traditional platforms that cannot match this constant accessibility.
For instance, on May 19th, BitMEX, a premier centralized bitcoin derivatives platform, experienced a significant outage in its trading engine, impacting countless traders globally. The BitMEX team followed up stating:
“We affirm that user funds remain secure, pending orders will be declined, and no liquidations will occur during the downtime. Upon reactivation, there will initially be a phase where only cancellations are allowed.”
In this regard, dYdX served as a contrast to BitMEX: operating smoothly in a decentralized manner while BitMEX faced challenges.
There's ample space for both centralized and decentralized platforms around Ethereum. However, decentralized exchanges are starting to showcase significant advantages, which might be pivotal in the future.
