dYdX Could be Among Largest Beneficiaries From FTX Collapse: Report
The unforgivable mishandling of customer funds has left millions of users with trapped funds, crippled years of constructive industry reputation, and triggered new credit contagion risks.
Amidst this chaos, the native token of the decentralized crypto derivatives exchange, dYdX, has risen by more than 50% over the past week.
According to prominent crypto analytic firm, Santiment, DYDX has a chance to become a strong narrative in the coming weeks.
Aiding the price appreciation is the accumulation of addresses holding between 1,000 to 10,000 DYDX surging to an 11-month high. Data suggest that this cohort of investors has been piling up tokens since late September this year.
More interestingly, accumulation by the investors gained traction during the first week of November, around the same time FTX was embroiled in insolvency.
“They were able to do a great job, adjusting their position at the right time. Having strong nerves, they sometimes buy during a crash. They seem to be knowing what they doing so far.”
The tumbling of a great centralized crypto empire highlighted the need for decentralized infrastructures that not only offer users exposure to crypto assets but, more crucially – ownership.
The latest data of mid-tier holders accumulating DYDX may not necessarily mean the departure of investors from centralized crypto exchanges, but it does depict a greater reliance on DeFi structures.
Despite the shockwaves from the collapse, trading volumes on decentralized exchanges (DEXs) surged to $32 billion over the past week.
According to Dune Analytics, Uniswap continues to dominate the market with over $20.3 billion in trading volume.
Continued exchange outflows also showed dwindling confidence among market participants on CEXs.
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