“Commercial activities related to virtual currency are illegal financial activities … seriously jeopardize the security of people's assets.” This was the statement released a few days ago by the People's Bank of China. After the renewal of the ban on cryptocurrencies in China, the price of Bitcoin has dropped by more than $2.000. The overall market capitalization of cryptography has also taken a hit. However, here is what stood out.
Amid concerns about a new crackdown on cryptography, Chinese traders turned to DEX dYdX derivatives. DEX outpaced Coinbase's spot markets for the first time.
Meaning
According to CoinGecko, the exchange recorded more than $4,3 billion in trading in the last 24 hours. In doing so, it surpassed Coinbase's $3,7 billion volume by almost 15%. Antonio Juliano, founder of DYdX and former Coinbase employee tweeted the same to highlight this milestone.
5 years ago I left @coinbas to and eventually founded dYdX
Today, for the first time, @dydxprotocol is doing more trade volume than Coinbase pic.twitter.com/QzoKAUpH29
— Antonio | dYdX (@AntonioMJuliano) September 26, 2021
Meanwhile, Coinbase comparatively remained relatively stable in terms of foreign exchange volume growth over the same period, at around 6%. Although Coinbase's volumes peaked at $19 billion in late May, when encryption markets were also at their peak. Whereas, the exchange in question witnessed a 19.700% increase in terms of daily foreign exchange trading volumes. According to L2beat, dYdX is currently second in terms of total market share with about 19% and $478 million in total blocked value (+20% – 7-day change).
China-based cryptography reporter Colin Wu noted a recent increase in demand for DEXs and other decentralized finance (DeFi) products among Chinese users. He opined,
“A large number of Chinese users will flood the DeFi world, and the number of MetaMask and dYdX users will increase a lot. All Chinese communities are discussing how to learn defi. ”
Furthermore, analyst Lark Davis has also expressed his response to this development.
$DYDX going nuts!
- Lark Davis (@TheCryptoLark) September 27, 2021
This news comes after China's regulatory crackdown on crypto assets. China “banned” or caused FUD in the crypto space on different occasions since 2009. Many in this community have asserted a similar narrative as mentioned below in the tweet.
If this is your first China #bitcoin #crypto ban then understand 👇
1 China has been trying and failing since 2013
2 no one can shut crypto down
3 China bans all the cool stuff, just makes it cooler
4 this too shall pass
5 this dip will be slurped deeply by those in the know- Lark Davis (@TheCryptoLark) September 26, 2021
However, despite the ban, BTC is climbing the charts again. At press time, it was trading near the $44.000 mark, up 1,5% in 24 hours.
