In a move of unprecedented consensus, decentralized exchange dydx witnessed almost universal approval from its users to migrate to its latest version and see DYDX adopted as the Layer 1 token for its imminent blockchain. This near unopposed decision came off the back of a vote on the Snapshot platform. With an astonishing 36 million votes in favor out of close to 400 addresses, and only a meager 43 votes against from four addresses, the exchange’s large community has set the wheel in motion for the DYDX token’s transition from ETH to a Layer 1 appchain within the Cosmos ecosystem, which is presently on the testnet stage.
Accompanying this smooth transfer, is the development of an Ethereum smart contract under the vigilance of the dYdX Foundation. The main objective of this contract is to guarantee hassle-free relocation of DYDX tokens from Ethereum to the forthcoming dYdX Chain. Founded in 2018, the dYdX exchange has managed to position itself as a leader in the decentralized derivatives market, with the last 24 hours alone seeing roughly $240 million in trading volumes, and a total trading volume over $1 trillion since its 2020 inception.
Meanwhile, with the shift in investment patterns following the recent crypto meltdown, focus appears to be drifting from Centralized Finance (CeFi) to Decentralized Finance (DeFi). An analysis from CoinGecko underlines this shift, illuminating a whopping $2.7 billion in investment towards DeFi projects in 2022, a remarkable leap of 190% compared to the previous year. On the flip side, investment in CeFi projects saw a significant plunge of 73% to $4.3 billion within the same duration.
The Binance CEO, Changpeng Zhao, has also projected that DeFi holds potential to outshine CeFi in the future sparked bull run. Commenting on the evolutionary decentralized nature of the industry, Zhao predicted that DeFi trading volumes could soon surpass CeFi volumes, which presently hover at a modest 5% to 10%.
Given the dydx’s strategic planning and the increased emphasis on DeFi over CeFi, it’s little wonder that the industry is in the throes of rapid transformation. Yet the question remains: is this shift a feasible long-term strategy or a fleeting trend in response to the recent market downturns? Only time will tell.
Source: Cryptonews
