- The CFTC launched one of the biggest lawsuits against Binance on Monday.
- Decentralized exchange tokens like GMX and dYdX outperformed.
Decentralized Exchange (DEX) tokens like GMX and dYdX rose on Tuesday as investors reacted to the new lawsuit against Binance, the biggest exchange in the world. GMX token rose by 10% to $74.40 while dYdX rose by 75 to $2.40. Other DEX tokens like Uniswap also jumped.
CFTC vs Binance lawsuit
The biggest cryptocurrency news this week was the lawsuit between the Commodity Futures Trading Commission (CFTC) against Binance. In its statement, the agency accused Binance of offering derivative products in the United States without registering.
Binance has denied those claims and said that it will work to defend itself. In a statement, the company said that it had invested vast resources to prevent Americans from trading in the ecosystem.
Read more: Binance review.
The lawsuit came a few days after the SEC and Coinbase got into another regulatory challenge. Coinbase sent a notice to the company as it investigates its staking product. Staking is a process in which people delegate their tokens to earn a reward. The SEC has sent notices to other companies, including Genesis and Gemini, a cryptocurrency exchange.
Therefore, DEX exchanges seem to be benefiting from the current crisis. dYdX has seen its trading volume jump by 55% in the past 24 hours to $955 million. Uniswap V3 volume jumped by 50% to $895 million while its Arbitrum’s version rose by 31% to $446 million.
It is worth noting that other centralized exchanges have seen higher volume in the past 24 hours. Binance trading volume rose by 485 to $55 billion while OKX rose by 57% to $15.7 billion.
GMX price prediction
The 4H chart shows that the GMX token has drifted upwards in the past few days. It managed to move above the 25-period and 50-period exponential moving averages (EMA). Also, the token’s Relative Strength Index (RSI) and the Stochastic Oscillator have all tilted upwards. Therefore, GMX will likely continue rising as buyers target the key resistance point at $80, which is about 10% above the current level.
dYdX price prediction
The dYdX token price has drifted upwards as investors react to the ongoing efforts to decentralize the ecosystem. The new version, which will be built on Cosmos, will be launched in September this year. On the 4H chart, the token has risen from a low of $2.14 to ~$2.50.
The token has moved slightly above the 25-period moving average while the Stochastic Oscillator moved close to the overbought level. This price is slightly above the key support level at $2.33, the lowest level in February this year.
dYdX will likely continue rising as buyers target the next key resistance point at $2.66, the highest point on March 24th.
