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Perpetuals trading fuels dYdX with +50M USD volume

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DappRadar

Within the first 5 months of 2020 more than 668M USD of trading volume was generated through dYdX.

dYdX is one of the fastest-growing dapps within the Ethereum DeFi ecosystem. Users can borrow, lend, and margin trade across any supported asset and it is also a sector-leading margin-trading DEX. Recently, dYdX released BTC/USDC perpetual contracts, offering up to 10x leverage.

The term ‘perpetual’ came from the centralized finance world. Perpetual trading has quickly become the most widely used product in the crypto space with daily trade volumes of billions of dollars.

The popularity of perpetual trading within centralized applications gives us an indication that the addition of BTC/USDC perpetual trading is going to have a significant impact on the DeFi ecosystem.

It is important to continually investigate how perpetual trading is evolving and adding value to the decentralized finance sector. Specifically what impact was felt by particular DeFi dapps – in this case, dYdX.

Key takeaways

  • Daily unique active wallet activity increased by 83.5% in May YoY
  • Within the first 5 months of 2020, more than 668M USD in trading volume through dYdX
  • 50M USD (23%) of trading volumes (April-May 2020) came from perpetual trading which indicates a very bright future

84% Year-on-Year growth

In the decentralized exchange (DEX) sector, DappRadar has witnessed impressive growth in daily active unique wallets in 2020. As a hybrid, DEX, and DeFi dapp. dYdX is performing very well in regards to attracting daily active unique wallets with its impressive feature list.

As dYdX releases new products and features we see the number of daily active unique wallets has also increased steadily. Year-on-Year, from May 2019 to May 2020 we observed 84% growth.

Perpetuals generate $50M

When perpetual trading was originally released on dYdX on the 15th of April 2020. A volume of 50M USD was generated in less than 2 months. Impressively, in May 2020 total volume reached 39M USD and in June already we observed more than 10M USD. 

Perpetual trading volume contributed 23% to the total trading volume on dYdX since release. On the 19th of May 2020, a major contribution was spotted when 12M USD in trading volume occurred in just one day. Resulting in dYdX becoming the number 1 DeFi dapp, on that day.

Looking at the data we can predict that the potential of perpetual trading is just getting started in the decentralized finance world. We are witnessing the beginning of a very exciting chapter in the DeFi ecosystem.

Conclusions

Perpetuals trading was one of the most popular ways to gain cryptocurrency price exposure in 2019. It is therefore not a surprise that dYdX decided to adopt the BTC/USDC trading pair.

Within just a few months of 2020, perpetuals trading on dYdX has generated a 50M USD trading volume for dYdX. Helping it to appear consistently within the top 5 DeFi dapps as tracked by DappRadar.

The data suggests that centralized trading will have some serious competition in the near future as dYdX prepares to add additional features and add at least a few more additional pairs to 10x trading.

We will continue watching this space. Make sure you bookmark DappRadar and sign up to our newsletter below to get updates direct to your inbox.

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Limitations & Data Sources

  • Unique wallet counts and transaction volumes were gathered from DappRadar.
  • Trading volumes were gathered from multiple Dune Analytics queries.

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