Governance tokens and decentralized exchanges may seem like a trend that passed when the bullrun on the cryptocurrency market ended. However, the sudden recovery of the DeFi industry and other factors are pushing tokens like dYdX upward.
DeFi on rise again
As we mentioned, the recovery of the market was not as groundless as it may seem at the beginning. According to Etherscan, networks like Ethereum saw a surge in the number of new smart contracts deployed on the network.
Volume on the DeFi platform and exchanges is also on the rise, according to DeFiLIama. Since dYdX is noncustodial, decentralized exchanges and investors are grabbing the governance token in order to gain more exposure to the potential growth of the exchange in case of a rapid recovery.
dYdX enters top
According to TheInformers, dYdX remains one of the most promising cryptocurrency start-ups on the market as the exchange utilizes all the ways of optimizing the trading performance on the platform by using a scalability engine and processing cross-margined perpetuals on the Layer 2 network.
Scaling solutions implemented by dYdX are built to increase transaction speeds, eliminate gas costs and reduce trading fees.
With growing volume on DeFi markets and the positive price performance of dYdX, traders might FOMO-in to the fastest-growing assets. In the last three days, DYDX gained more than 14% to its value in the last three days.
Prior to the DeFi-fueled market recovery, dYdX started a reversal on the market with a 27% price increase. According to volume profiles, the asset most likely entered a trend reversal cycle after the prolonged consolidation and accumulation.