- Major decentralized cryptocurrency exchange dYdX has quit Ethereum for Cosmos, choosing sovereignty over security.
- The derivatives exchange has launched its own blockchain within the Cosmos ecosystem, abandoning Ethereum in a bear market.
- Analysts predict Ethereum price could drop below $1,000 as the largest altcoin begins downtrend.
dYdX, a large decentralized exchange, has quit the Ethereum blockchain in favor of Cosmos, as the platform seeks sovereignty. The derivatives exchange launched a blockchain within Cosmos and promised the best experience to users.
dYdX prefers Cosmos ecosystem over Ethereum
dYdX recently announced that it has called quits on the Ethereum ecosystem and launched its own blockchain within Cosmos. Antonio Juliano, founder and CEO of dYdX, said that the new blockchain will allow the decentralized exchange to offer the best experience to users.
While quitting the Ethereum blockchain implies reduced security, the upside is the customized fee structures and higher transaction fees. dYdX’s platform was built on top of Ethereum using the scaling solution StarkWare, a zk-rollup technology. Despite the rollup, the core protocol was lagging and competition from other smart contract ecosystems increased exponentially.
The exchange’s plan to quit Ethereum is viewed as evidence that the “world computer” is lagging behind. Competitors like Cardano, Solana, Polkadot and Avalanche are rapidly scaling to offer projects the solutions they seek in terms of faster transaction processing and lower cost.
Ethereum is no longer fast enough to accommodate the demand of the rapidly growing DeFi ecosystem. Among DeFi projects, dYdX has earned recognition as the exchange that facilitates large trades without slippage.
Automated market makers like Uniswap and SushiSwap suffer slippage, a common quirk for DeFi platforms. However, dYdX avoids slippage by using a traditional order book to facilitate swaps and directly links buyers and sellers of tokens and contracts.
dYdX is a preferred exchange among institutional investors.
dYdX chose sovereignty over security
Cosmos ecosystem is considered the right choice for blockchains that are built for specific use cases. Rather than one specific blockchain, Cosmos is a family of blockchains, and it facilitates quick and effective communication and swaps. Therefore, dYdX now has the freedom to set up parameters specific to a given use case.
The creators of dYdX believe the new chain will allow the exchange to better optimize and handle the order book as the platform grows. Ethereum offers decentralized applications security that is extended to the entire ecosystem irrespective of the function of the dApp. However, this does not allow an exchange the freedom to adjust transaction fees in proportion to size.
Dan Edlebeck, founder of Cosmos-based Sei Network, is quoted as saying,
You can guarantee you are in more control of your chain itself.
Analysts predict Ethereum price dropping to $830 level
Analysts at FXStreet evaluated the Ethereum price chart and predicted a drop below the $1,000 level. Analysts believe the $830.93 level could come into play, a key support for Ethereum. Ethereum price could plummet by another 30% in the current bloodbath.
@Phoenix_Ash3s, a leading crypto analyst, believes Ethereum price needs to hold above $1,000 for a reversal. A drop below $1,000 could imply continuation of the downtrend.
ETH-USDT price chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Altcoin bull cycle 2023 picks by analyst: Ethereum, ChainLink, Arbitrum, Optimism

Crypto analyst Michaël van de Poppe picked four altcoins for the ongoing bull run, in his recent video on YouTube. The analyst believes these altcoins could outperform other assets and yield gains for traders, alongside Bitcoin price rally to $48,000.
Bitcoin core developer calls Ordinals a “vulnerability” for the BTC blockchain

Bitcoin community on the internet is embroiled in a debate on whether Ordinals are a vulnerability to the BTC blockchain. While Bitcoin core developers consider inscriptions as spam, they are being considered an evolution of the BTC blockchain by others.
Solana continues to see inflows from the Ethereum chain, SOL price sustains above $72

Solana has captivated market participants' attention and attracted capital inflows from the Ethereum chain. SOL is making headlines for airdrops in the Solana ecosystem and the token has yielded double-digit gains for holders in the past week.
MATIC price could face selling pressure from mounting inflow to exchanges

Polygon’s native token MATIC is likely to succumb to selling pressure from rising inflow of the asset to exchanges. Large wallet investors are sending MATIC to Binance and Coinbase, increasing the selling pressure on the asset.
Bitcoin Weekly Forecast: BTC uptrend capped by supply barrier at $43,860 as FOMO fails to suffice

Bitcoin (BTC) price uptrend has sustained since mid-September on the weekly timeframe but has since slowed down following the lack of tailwinds to drive the market. All along, narratives, themes and speculation were the driving factors, inspiring a wave of fear of missing out (FOMO) in the market. As it turns out, FOMO is not enough anymore.