The decentralized exchange’s native token, DYDX, is up nearly 80% this week as traders assess its potential amid the recent crypto trading ban in China.
DYDX price hit a new high of $ 26.50 on the FTX exchange after trading at around $ 13 a week ago. China’s ban is an obvious nudge for the DYdX (DEX) decentralized exchange, which offers users perpetual, margin and spot trading, as well as credit and credit services.
Holding DYDX enables the rights holder to propose changes to the Layer 2 protocol of dYdX and vote on them. DYDX bettors receive rewards by depositing funds into the DEX’s appropriate liquidity wagering pools. In addition, users benefit from a discount on the transaction fee, but this depends on the size of their DYDX reserve.
dYdX distributes – or airdrops – DYDX tokens among users based on their activity on the DEX platform. The lowest tier that trades on the exchange for at least $ 1 will get 310 DYDX. Meanwhile, those who traded over a million dollars worth of digital assets on dYdX received 9,529 tokens.
As a result, many traders committed to holding their free DYDX tokens have made more than $ 245,000 in profit as the cryptocurrency hit a record high of $ 26.50 on Wednesday. One of the traders – who got DYDX by having multiple accounts with dYdX – made about $ 900,000.
My free $ DYDX Airdrops worth $ 900,000. Good Morning.
– Carter (@moneywithcarter) September 23, 2021
Although the price per token has corrected more than 10% since then, its daily return is still above zero, suggesting traders’ intent to speculate more on DYDX’s uptrend in the near future.
One of the main reasons for their upward trend is China. The People’s Bank of China released a notice on September 24th banning all types of crypto-related transactions. In response, crypto assets have fallen, including the leading assets Bitcoin (BTC) and Ether (ETH).
However, the hardest hit cryptocurrencies include Huobi Token (HT) and OKB, the native tokens of China-focused exchanges, Huobi and OKEx, respectively. While the HT price fell 52.64% two days after the PBoC was announced, the OKB price fell 43.87% over the same period.
The tokens fell when Huobi and OKEx closed their over-the-counter deals in China and stopped accepting Chinese users on their platforms.
On the other hand, dYdX volumes exploded to record highs, fueling speculation that Chinese traders are shifting their business to exchanges without central intermediaries and without know-customer customers or KYC.
As of Monday, dYdX had enabled more than $ 4.3 billion in transactions, compared to Coinbase’s $ 3.7 billion.
DYDX price has more upside potential based on a supporting technical indicator.
A bullish continuation pattern, also known as a bull flag, occurs when the asset consolidates downward within a descending channel after a strong upward movement. The attempt is made to break the bullish structure out of the bearish structure.
Related: DeFi farmers brag about dYdX airdrop for games when prices go up
When this happens, the price tends to rise with a length equal to the size of the previous uptrend. So it appears that when a bull flag forms on its 15 minute chart, as shown below, DYDX will check all the boxes.
As a result, the DYDX is currently rising towards or above $ 27.