The DYDX token, DYDX, is up nearly 80% this week as traders assess their potential with regard to China’s recent ban on cryptocurrency trading.
DYDX hit another high of $ 26.50 on the FTX after trading around $ 13 a week ago. The ban in China has been a clear incentive for the dYdX decentralized exchange (DEX), which provides ongoing trading, margin trading and spot trading, and provides lending and lending services to its users.
Owning DYDX gives the owners the right to propose and vote on changes to the dYdX Layer 2 protocol. DYDX members are rewarded by depositing the amount in groups with appropriate liquidity rates on the DEX. Users also receive a discount on trading commissions based on the size of DYDX reserves.
DYDX has been distributing or distributing DYDX tokens among its users based on their activity on the DEX platform. The minimum traded on the exchange at least $ 1 earned 310 DYDX. Meanwhile, those who traded over $ 1 million in digital assets received dYdX 9529 tokens.
As a result, many traders holding free DYDX tokens have earned over $ 245k in profit, and the cryptocurrency peaked at $ 26.50 on Wednesday. A DYDX trader with more than one dYdX account earned about $ 900K.
Although the coin’s price subsequently corrected by more than 10%, the daily yield is still positive, indicating that traders intend to speculate more on the DYDX bullish bias in the coming sessions.
Chinese research and development attracts new users
China was one of the main reasons for their optimism. On September 24, the People’s Bank of China issued a statement banning all types of cryptocurrency-related transactions. Crypto assets have plummeted in response, including major assets Bitcoin (BTC) and Ether (ETH).
But among the hardest hit cryptocurrencies were Huobi Token (HT) and OKB, two tokens held by central China-focused exchanges, Huobi and OKEx, respectively. While HT price lost 52.64% two days after the NBK announcement, OKB price fell 43.87% over the same period.
Daily price chart of OKB / USD and HT / USD. Source: TradingView.com
Coins fell sharply when Huobi and OKEx closed their OTC operations in China and stopped accepting Chinese users on the platform.
On the other hand, dYdX volumes have reached record levels, raising the expectations of Chinese traders to move their activities to exchanges that do not have central brokers and do not practice “know your customer” or “know your customer” procedures.
DYdX trading volume (in USD). Source: Token Terminal
As of Monday, dYdX had over $ 4.3 billion in deals, up from $ 3.7 billion on Coinbase.
DYDX / USD daily price chart. Source: TradingView.com
The DYDX award has the potential to grow further based on technical support metrics.
A bullish flag, called a bullish pennant, appears when an asset below it consolidates in a downtrend channel after a strong upward move. At the same time, he tries to tear off the upper part of the chassis.
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When this happens, the price tends to rise with a length equal to the value of the previous uptrend. It looks like the DYDX is struggling to form a bullish pennant on the 15 minute chart as shown below.