The governance token of the decentralized exchange dYdX (DYDX) is up almost 15% in the last 7 days.
DYDX is leading the cryptocurrency market as the top gainer in the Top 100 this week. According to data from CoinMarketCap, the price of DYDX has recovered by almost 15% and is trading above $2,20 per unit at the time of writing.
However, the highest price the dYdX governance token has seen in the past 7 days has been $2,23.
DYDX’s surge has sparked interest among cryptocurrency traders, who have traded over $74 million worth of the token in the past 24 hours. According to the platform, DYDX’s trading volume has grown by 91% compared to the volume recorded the previous day.
Source: CoinMarketCap
DYDX market cap is up 5% on a daily basis, surpassing $335 million. With this value, DYDX ranks as the 90th cryptocurrency among the top 100 by market capitalization.
What drives the price of DYDX?
The crypto community is being quite receptive to the constant development of the protocol and its expansion plans in the crypto world.
The dYdX Foundation, the organization behind the development of the decentralized protocol, made important announcements this week; among them, the proximity of the launch of dYdX Chain.
The protocol developers are building a new blockchain based on the Cosmos SDK and the Tendermint consensus protocol to solidify their vision of becoming a fully decentralized protocol. As they explained, the PoS dYdX Chain blockchain marks the full decentralization of dYdX. Until now, the protocol for decentralized token exchange had been built on the Ethereum network.
Source: CoinMarketCap
Developing a proprietary blockchain will allow dYdX to better adapt to the current and future landscape of the blockchain industry. The developers also commented that building a proprietary network is essential for the radical changes being considered, in order to build a truly decentralized and efficient protocol.
The new dYdX network is completely sovereign, open-source and permissionless, so it does not depend on any other blockchain or external system.
In the middle of this month, the protocol developers launched the public testnet from dYdX Chain.
What will happen to the DYDX token?
According to the developers, using the DYDX token as the main token of the new blockchain seems like a natural fit for the project. However, it will be a decision that the protocol's crypto community will make in consensus.
Should the decision be made to use DYDX, the dYdX Foundation is preparing for the possible migration of the token from Ethereum to the new network. To do so, they have created a smart contract, called the Ethereum Smart Contract, which will allow for the creation of a one-way bridge to migrate the ERC-20 token from Ethereum to the dYdX Chain. They are also developing an open source code, User Interface Code, which can be used to implement a user interface or front-end to interact with the Ethereum Smart Contract.
Nearly $5.000 billion in trading volume
In the past week, dYdX recorded nearly $5.000 billion in trading volume.
dYdX is a decentralized exchange that offers users a simple interface for spot, margin, and perpetual trading. The goal of this protocol is to democratize access to finance and financial opportunities through tools based on traditional finance and DeFi.
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