By Richard Hines
The native token of the Decentralised crypto derivative exchange (dYdX) increased by more than 40% as investors accumulated and increased their wallet holdings during the crash. This reinforced the narrative that decentralized exchanges are more efficient and safer than centralized exchanges.
DYDX Surges Despite Market Turmoil
The market was unable to withstand the magnitude of the FTX crash; This misuse and misappropriation of user funds locked away billions of dollars in investor funds, undermining the crypto community’s efforts to make the crypto space safe and secure for investors and crypto enthusiasts.
In the midst of this crisis, the Decentralised crypto derivatives exchange, dYdX token, has increased by more than 40% in 7 days. This is quite remarkable given that the market has been trending downward.
According to an analysis report, DYDX has a very promising chance of becoming a strong force to contend with in the coming days with this pump.
The number of addresses holding the dYdX token was discovered to be a factor in the price increase. Moving from 1000 wallets to 10,000 wallets resulted in a 90% increase in addresses, which was an 11-month high for the exchange.
Market observers noticed investors rushing to buy this token, making a profitable entry into the market. Leading to the conclusion that, DYDX token might be able to withstand this market heat despite all the downward trends.
When wallet increases from holders buying this token spiked in the first few days of November, this token accumulation became obvious.
Are Decentralized Exchanges The Better Option?
The collapse of FTX served as a wake-up call to key players in the cryptocurrency industry, enlightening them on the dangers of centralized exchanges and businesses in the industry. This advocated and pushed for the need for decentralized entities in the space that give users ownership rights as well as access to a variety of crypto assets.
This is crucial because, in the event of a crisis, centralized exchanges may cease all operations, preventing users from accessing their funds or investments.
This accumulation of DYDXtokens may have imprinted the emergence of Decentralized Finance (DeFi) over Centralized Finance (CeFi), but this does not mean that centralized exchanges will become extinct; rather, users will become more comfortable with decentralized structures over centralized.
Despite the market shockwaves caused by this crash, decentralized sectors were partially affected, as trading volume increased by more than $30 billion in a week. With a total trading volume of $20 billion, decentralized exchanges (DEX) such as Uniswap continue to dominate the trading sector.