Last October, decentralized perpetual contract exchange dYdX launched its v4 version, transitioning from Ethereum's Layer 2 network to an independent Cosmos-based blockchain. This move aims to achieve "full decentralization" by removing centralized operation of its order book and matching engine.
Notably, according to CoinMarketCap data, dYdX v4 recorded $633 million** in 24-hour trading volume, surpassing **Uniswap v3** (Ethereum chain) at **$522 million, making it the highest-volume decentralized exchange (DEX). Meanwhile, dYdX v3 remains operational with $482 million in daily volume, ranking third.
However, in Total Value Locked (TVL), Uniswap dominates with $4.42 billion** (per **DefiLlama**) compared to dYdX’s **$332 million.
dYdX’s Successful Transition to Cosmos
As reported by CoinDesk, dYdX revealed that v4 has processed $17.8 billion** in total trading volume since launch. By comparison, **v3** handled over **$1 trillion in 2023 alone, with peak daily volumes exceeding $2 billion.
The strong performance of v4 dispels earlier concerns about declining usage post-migration from Ethereum to Cosmos. While dYdX plans to eventually sunset v3, no timeline has been finalized.
Paul Veradittakit of Pantera Capital commented:
"DeFi users prioritize platforms offering high throughput for fast, granular trades. Ethereum’s high gas fees exacerbate this, reducing profitability. dYdX v4’s shift to an independent Cosmos-based chain addresses these challenges with lower costs, higher throughput, and tailored on-chain logic for advanced trading."
DYDX Token Surges 15.8%
The native token DYDX has rallied 15.8% over two weeks, trading at $3.05 at press time (+3.9% 24h).
FAQ
Q: How does dYdX v4 differ from v3?
A: v4 operates on an independent Cosmos blockchain, enabling full decentralization of its order book and matching engine, unlike v3’s Ethereum-based partial centralization.
Q: Why does Uniswap have higher TVL despite lower volume?
A: Uniswap’s liquidity pools support diverse trading pairs, attracting more long-term deposits, while dYdX focuses on leveraged perpetual contracts.
Q: Will dYdX v3 be discontinued?
A: Yes, but the timeline remains unspecified. Users are encouraged to migrate to v4.
👉 Explore dYdX v4’s advanced trading features
Disclaimer: This content is for informational purposes only and does not constitute financial advice.