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DeFi exchange dYdX raises $65 million in Series C funding

DeFi exchanges are getting really popular due to their extreme stability during tough times. For example, do you remember the blood bath that happened in the crypto market a few weeks back? It saw such a huge trading volume that the world’s largest platforms like Binance and Coinbase were also not functional at the moment. But the DeFi platforms were up all the time and didn’t suffer any outage even for a single second. One such DeFi exchange is dYdX that has recently raised $65 million in a Series C funding round.

The funding round of the exchange dYdX

dYdX raised almost $10 million in a Series B funding round 4 months back, and now they conducted the Series C round. Paradigm led it, and they raised 6.5 times the amount raised in the last round. The exchange’s founder says that they have conducted two funding rounds pretty fast, but this is due to the huge opportunity in the market. Antonio says that he aims to make dYdX one of the largest crypto exchanges in the next 3-5 years.

DeFi exchange dYdX

The investors that took part in the Series C round are CMT Digital, CMS Holdings, Sixtant,  MGNR, Kronos Research, Menai Financial Group, Finlink Capital, QCP Capital, Electric Capital, Venture capital firms HashKey,  StarkWare, and Delphi Digital. That is quite a big list. Even the CEO of Coinbase was involved with dYdX through the Series B round.

The goal!

With the funds that they have just received, the exchange plans to add new assets and features to the platform. The DeFi exchange dYdX also plans to launch a new mobile app and continue to expand in other countries. They also plan to hire more members and expand their team.

dYdX has been seen seeing a constant increase in trading volume since 2018, when they launched. But one of the biggest issues with the same was the high gas fees. This is why they have recently implemented a new layer 2 protocol that will reduce the gas fees by 100x. This will make the platform more accessible to everyone who is not okay with paying such high fees. In addition, the protocol will also help increase the platform’s scalability, which is a big problem for DeFi exchanges.

Their new layer 2 protocol has been doing quite well, with over $2.2 billion in revenue for 11k traders in five months.

Do you think that dYdX could become one of the largest crypto exchanges in the next 5 years? And if yes, what is the reason behind that? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

Also Read: The World Wide Web has been turned into an NFT.



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