Connect with us
Active Currencies 14728
Market Cap $2,622,380,475,725.82
Bitcoin Share 51.35%
24h Market Cap Change $2.10

As dYdX [DYDX] freezes out of Canada, how did its indicators perform

2min Read
As dYdX [DYDX] freezes out of Canada, how did its indicators perform

Share this article

  • dYdX announced the winding down of user access for Canadian users. 
  • The dYdX token was attempting recovery on a daily timeframe, while active addresses and volume declined.

On 7 April, dYdX [DYDX] announced that the firm would begin the process of limiting access to its platform for users located in Canada. The first step involved suspending the onboarding of new users from the country. Then, as per the announcement, on 14 April, dYdX will transition all Canadian users into a “close-only mode,” permitting them to only withdraw their funds.

Read dYdX [DYDX] Price Prediction 2023-24

dYdX is a decentralized exchange (DEX) that operates on the Ethereum [ETH] blockchain. Through this platform, users can engage in peer-to-peer trading of cryptocurrencies and various other digital assets without intermediaries, unlike centralized exchanges. This unique approach to trading allowed for increased privacy, security, and control over one’s assets.

Canada takes a strict stance on trading platforms

On February 22, the Canadian Securities Administrators (CSA) released a notice outlining the new requirements for crypto asset trading platforms (CTPs) looking to register in Canada. These CTPs, like dYdX, must now agree to a new version of preregistration undertakings (PRUs), which are legally binding documents. Regulated CTPs will receive notification from their principal regulators regarding compliance with these new obligations.

The updated commitments aim to enhance investor protections in response to the recent wave of CTP insolvencies in 2022. Specifically, the regulators referred to the insolvencies of FTX, Celsius, and Voyager in the document. As a result of these stricter regulations, there is a possibility that more CTPs could exit the Canadian market in the future.

dYdX metrics decline

Even before the aforementioned announcement, there had been a noticeable impact on dYdX’s active addresses. According to data from Santiment, there has been a decline in the number of active addresses since around 31 March.

While there have been attempts at recovery, the metric was still far below its earlier levels in the year. As of this writing, the number of active addresses on the platform was around 410.

dYdX active addresses metric

Source: Santiment

In addition to the decline in active addresses, its volume metric has also declined. Santiment’s analysis of the volume metric indicated a noticeable decrease, and while there has been some recovery, it remained relatively low.

As of this writing, the volume metric for dYdX was over 59 million. The volume was significantly lower than the over 200 million it saw in March before the decline.

dYdX volume

Source: Santiment

Is your portfolio green? Check out the DYDX Profit Calculator

DYDX on a daily timeframe

On a daily timeframe, DYDX had experienced a decline in value, losing over 3% on 7 April. However, as of this writing, it had regained almost 1% and was currently trading at around $2.48. While the token remained below the neutral zone on the Relative Strength Index, it had attempted to push above it.

dYdX/USD price movement

Source: TradingView


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.