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Ethereum dYdX Will Launch Standalone Blockchain On Cosmos, Token Jumps 10%

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Ethereum dYdX Will Launch Standalone Blockchain On Cosmos, Token Jumps 10%

Ethereum-based decentralized trading platform dYdX will be deployed as an independent blockchain on the Cosmos ecosystem. The team behind the project made the announcement this morning leading to a positive reaction for its governance token, DYDX.

Related Reading | Bitcoin Steady Above $20K After Drop To $17K – A Slow Climb To Green?

At the time of writing, this token trades at $1.50 with an 8% profit in the last 24 hours for its USDT trading pair and a 10% profit on its ETH trading pair. In the meantime, larger cryptocurrencies are facing hurdles and could continue to consolidate around their current levels.

DYDX is in a downtrend on a 4-hour chart. Source: DYDXUSDT Tradingview

The standalone blockchain is part of this platform’s fourth iteration, dYdX v4. The team behind the project expects to “open source dYdX V4 by the end of 2022” but, as they clarified, this iteration will provide “critical” improvements so it will “require months of heads-down development”.

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The team behind the Ethereum-based trading platform picked Cosmos and its Proof-of-Stake (PoS) Tendermint consensus because of its security, decentralization, customizability, cross-chain capacities, and leverage its scalability.

Thus, the platform will be able to process more transactions, and potentially increase its market share, amount of users, and trading volume while moving to its next development stage: full decentralization. The team behind the project said:

The main requirement for the V4 protocol is full decentralization. The decentralization of a system is equal to the decentralization of its least decentralized component. This means that every part of V4 needs to be decentralized while also remaining performant.

The ultimate objective, according to the announcement, is to make dYdX “one of the largest exchanges in all of the crypto”. This requires an infrastructure capable of processing a lot of transactions and supporting the exchange’s engine without compromising its level of decentralization.

The team behind the project added:

Developing a decentralized off-chain orderbook and moving from Ethereum to a dYdX-specific chain as a major DeFi protocol is very much untested, but we believe this gives dYdX the best shot at offering a competitive product experience with centralized exchanges.

Is Leaving Ethereum The Best Choice For dApps?

The fourth iteration of dYdX will have new features, such as an off-chain order book, and no trading gas fees. The fee structure will be similar to that of centralized exchanges. The governance token DYDX will continue to be the main component of the exchange’s governance model.

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The announcement has been celebrated across a portion of the crypto community, the market seems to have reacted positively. However, others have expressed concerns as they believe a standalone version of dYdX will lack security and composability, or design flexibility.

Related Reading | Ethereum (ETH) Market Cap Falls More Than $124 Billion In Six Weeks

Analyst Ryan Watkins said the following on the dYdX announcement:

While I understand the desire for sovereignty and the need to scale more quickly, I’m not convinced why an app-chain is the best path forward. Losing security and composability (as opposed to deploying on Starknet) with the Ethereum ecosystem seems risky.

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24 hour dex trades

Metrics Show Decentralized Exchange Volumes Continue To Slide This Year

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Metrics Show Decentralized Exchange Volumes Continue To Slide This Year

Decentralized exchange (dex) volumes have been dropping since December 2021 according to current statistics. However, last month dex trade volumes spiked 2.37% higher than the volumes recorded in February. Despite the brief spike and with only eight days left in April, metrics show this month’s dex volumes will likely be much lower than in March.

Decentralized Exchange Volumes Slip Month After Month — April’s Dex Volumes Remain Lackluster

In 12 months, dex platforms recorded over $1 trillion in trade volume as they have become prominent fixtures in the crypto industry. Today, data from coingecko.com, coinmarketcap.com, dune.com, and theblockcrypto.com indicates that Uniswap version three (v3) is the largest dex by 24-hour trade volume, with $1.29 billion during the last 24 hours. Following Uniswap v3, dex platforms like Pancakeswap v2, Dydx, and Curve Finance hold the top 24-hour volume positions at the time of writing.

The top two decentralized exchange (dex) platforms during the last 24 hours on April 21, 2022, according to coingecko.com stats.

The dashboard called “DEX Metrics” on Dune Analytics, shows dex trade volume during the last seven days, out of more than a dozen dex protocols, is approximately $14 billion. The trailing seven-day metrics indicate the dex volumes recorded on the Dune Analytics’ dashboard are down 22%. Data from theblockcrypto.com’s crypto dashboard shows 30-day statistics stemming from five high-volume dex platforms and 16 smaller dex protocols.

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Those statistics show a downward slide since December 2021 after $186.03 billion was recorded that month. The following month in January, dex platforms saw $157.68 billion in trade volume, and then in February, it slid to $114.37 billion. That means between December and February 2022, dex trade volume plummeted by 38.52%.

As mentioned above, there was a brief spike in dex trading volume in March, as $117.09 billion was recorded during that timeframe. However, April’s statistics look as though dex trading volumes will be lackluster and possibly lower than February. As of Thursday, April 21, 2022, current data shows that $75.11 billion in trades have been recorded so far.

While the theblockcrypto.com’s dashboard covers 30-day stats, seven-day metrics from coinmarketcap.com dex volume charts show an uninspiring week as well. The Dune Analytics’ “DEX Metrics” dashboard indicates current 30-day dex trade volume is approximately $70 billion. It will take a lot of trade volume to catch up to March’s spike and as of now, that doesn’t look as though it will happen.

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24 hour dex trades, 30-day dex trade volume, coingecko.com, Coinmarketcap.com, Curve.finance, decentralized exchanges, DeFi, Defi Data, Defi metrics, dex metrics, dex stats, Dune Analytics, dune.com, Dydx, Monthly Volumes, Pancakeswap v2, theblockcrypto.com, Trade Volumes, uniswap v3

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What do you think about dex trading volume dropping since December? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, theblockcrypto.com dashboard, coingecko.com stats,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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‘100x Lower Than L1 Fees’ — Alchemy Integrates Ethereum L2 Product Starknet To Increase Web3 Scalability

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‘100x Lower Than L1 Fees’ — Alchemy Integrates Ethereum L2 Product Starknet To Increase Web3 Scalability

According to the startup Starkware, the team’s Ethereum layer two (L2) service Starknet has been integrated by the blockchain API and node service Alchemy. Developers can now leverage Alchemy’s infrastructure tools alongside Starknet’s zero-knowledge (ZK) rollup technology.

Israel-Based Startup Starkware Partners With Alchemy

On Monday, the blockchain startup Starkware announced the team has inked a strategic partnership with Alchemy. The partnership will allow Alchemy customers to build decentralized finance (defi) and Web3 applications using Starknet, Starkware’s Ethereum layer two (L2) service.

Essentially, Alchemy is a blockchain infrastructure firm that provides node services and blockchain APIs to clients. For instance, Alchemy’s Supernode provides API call data for networks like Ethereum, Polygon, Arbitrum, Optimism, and Flow.

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Starkware revealed the Alchemy collaboration on Twitter and further remarked that Alchemy’s suite of products will “make it easier and more accessible for the growing number of developers to build on Starknet.”

The L2 product Starknet’s rollups use ZK-based computations that utilize validity proofs and the project claims Starknet gas fees are “100x lower” than layer one (L1) Ethereum fees. The defi perpetuals and derivatives protocol Dydx leverages ZK-based rollup tech that is similar to Starknet’s underlying framework.

“We’re excited about supporting Starknet because we believe that Starknet’s utilization of validity and ZK-rollups offer solutions to core Web3 problems,” Alchemy said in a statement published on Monday. “These solutions increase scalability by bundling transactions together off-chain, and then verifying them on-chain with just a fraction of the costs.” Alchemy continued:

But in contrast to other Layer 2 scaling solutions, such as optimistic rollups that can take longer to confirm transactions, validity rollups use what are called validity proofs to instantly prove if transactions are valid or not.

Starkware Valued at $2 Billion

The Alchemy integration follows Starkware revealing at the end of February that Starknet Alpha was deployed on mainnet. In November, Starkware raised $50 million in a Series C led by Sequoia Capital, and $173 million in overall capital injections propped the Israel-based startup’s valuation to $2 billion. The co-inventor of Starknet and co-founder and president of Starkware, Eli Ben-Sasson, believes the partnership will be a game-changer.

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“It means that with Alchemy’s infrastructure, the developer community now can more easily access Starknet, the most cutting edge permissionless scaling platform, harnessing the power of validity proofs,” the Starkware executive remarked in the partnership announcement.

What do you think about Starkware partnering with Alchemy? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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