DyDx Becomes Most Used Decentralized Exchange

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  • Decentralized exchange DyDx has beaten Uniswap to record the highest 24-hour DEX trading volume
  • The platform registered a 24-hour trading volume of $757 million against Uniswap’s $608 million
  • DyDx claims to have surpassed $1 trillion in trading volume since its inception

Cosmos-based decentralized exchange (DEX) DyDx v4 has toppled Ethereum-powered market leader Uniswap v3 in 24-hour trading volume by close to over $150 million. According to CoinMarketCap (CMC), DyDx’s trading volume on January 18 touched $757 million while that of Uniswap reached a high of $608 million within the same timeframe. DyDx claims to have facilitated trades worth $1 trillion since its launch in 2017, a sign of growing usage of DeFi platforms.

A Temporary Win

DyDx v4 currently controls slightly over 8.5% of the DEX market share while Ethereum-powered Uniswap v3 rules 12% of the market. However, DyDx’s older version, v3, powered by Ethereum layer 2 polygon, controls 7.7% of the market, putting DyDx’s total DEX market share above 16%.

Cosmos-based DyDx didn’t, however, manage to cement its new position as Uniswap has reclaimed its seat with a 24-hour trading volume of $711 million against DyDx v4’s $498 million. DyDx v3 comes third with a volume of slightly above $490 million.

In fourth place is Jupiter with around $323 million and Polygon-based Kine Protocol comes fifth with $321 million. Arbitrum-based Uniswap v3 is in sixth place with a volume of roughly 320 million and a 5.5% market share.

DyDx Mitigates Risks after Exploit

It’s not clear what caused the spike and sudden drop in volume on DyDx. The tussle in trading between the two DeFi platforms comes two months after DyDx announced new measures to mitigate risks after suffering a $9 million exploit.

It also comes five months after Uniswap’s KYC hook feature divided the DeFi community with some arguing that it could be misused by regulators.

With the rise and fall of trading volume on the two platforms an indication of a brewing competition, it’s yet to be seen who will emerge as the winner.