Today in Markets

dYdX Chain Reigns Supreme

Cosmos-based dYdX Chain flips Uniswap volume
Jan 17, 20241 min read

dYdX soars. Every degen has a pit in their soul that can only be filled by leverage trading, and crypto exchanges are the direct beneficiary of this demand! Which tokens stand to benefit the most from it?

Yesterday, the recently deployed Cosmos-based dYdX chain that hosts the Protocol’s V4 deployment flipped both Uniswap and dYdX’s V3 platform to become the largest decentralized exchange by volume.

The volume comparison may not be exactly apples to apples, as Uniswap is a spot-only platform whereas dYdX offers traders access to leverage through derivatives, but V4’s accomplishment demonstrates that the chain can attract traders, serving to confirm dYdX’s decision to migrate to their own Cosmos app chain.

To celebrate, the DYDX token is up 22% on the week, but another app chain-based exchange is close behind with aspirations to steal dYdX’s crown…

While the Aevo Exchange from Ribbon Finance only has 13% of dYdX’s TVL, it managed to generate half as much fee income as the incumbent!

In recognition of Aevo’s fee generation potential, RBN is up 20% on the week, but at an FDV that is one-tenth the size of DYDX, outsized gains for holders going forward seem probable should volumes and fees continue to flow to Aevo.


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