- dYdX price pulled back sharply this week as crypto prices dropped.
- The platform decided to slash fees in a bid to attract more users.
The dYdX price has struggled in the past few days as cryptocurrency prices recoil. The coin dropped to a low of $2.248, which was the lowest level since July 28th this year. It has fallen by more than 18% from its lowest level in July.
dYdX slashes fees
Decentralized Finance (DeFi) is one of the biggest use cases of the blockchain industry. Today, the industry is made up of several key sub-sectors like decentralized exchanges, swapping, and lending protocols.
dYdX is one of the leading players in the DEX industry. It is a key platform that helps people from around the world to buy and sell cryptocurrencies in a decentralized manner. Some of the most popular tokens traded in the ecosystem are BTC, Dogecoin, and Ethereum.
dYdX differs from other centralized exchanges like Coinbase and Binance in a number of ways. First, users don’t need to register in the platform. Instead, all they need is to link their cryptocurrency wallet.
Second, dYdX is an open-source platform, meaning that anyone can contribute to its code. Centralized exchanges have internal codes that are not shared with the public. Finally, dYdX has a governance token where users can vote on key changes to the network.
Learn more about how to buy dYdX token.
Like other exchanges, dYdX has seen the total volume in its ecosystem drop sharply in the past few months as the number of crypto investors reduces.
On Monday, the platform announced that it will reduce trading fees in a bid to attract more investors in its platform. The company will now offer free trading for most traders in its ecosystem. It will then charge a small fee to people trading over $100,000 per month.
Another potential catalyst for the dYdX price is the upcoming launch of its standalone V4 chain. The new version, which will be launched on Cosmos, will provide users with more tools to maximize their returns.
dYdX price prediction
The four-hour chart shows that the dYdX price surged to a high of $2.72 in July. This was a notable price since it was along the upper side of the ascending channel which is shown in blue. Now, the coin has pulled back as other cryptocurrency prices retreat. It has also managed to move below the 25-day and 50-day moving averages.
Therefore, the coin will likely continue falling as sellers target the lower side of the ascending channel at $2. A move above the resistance at $2.50 will invalidate the bullish view.
