DeFi Giant dYdX Trading Volume Hits $34.3 Billion Peak in Q4 Recovery

Source: CryptoNewsNet Original Title: DeFi Giant Dydx Trading Volume Hits $34.3 Billion Peak in Q4 Recovery Original Link:

Rebounding from a Midyear Slump

The ecosystem of the decentralized finance (DeFi) protocol, dYdX, saw a strong recovery in trading activity during the second half of 2025, culminating in its best quarterly performance of the year. According to the dYdX Annual Ecosystem Report 2025, trading volumes reached $34.3 billion in the fourth quarter, reversing a midyear downturn.

In the first quarter, cumulative trading volume was about $26.1 billion before dropping to $16 billion in the second quarter. To reignite participation, dYdX improved institutional and aggregator routing through targeted initiatives. Those efforts paid off, with trading volume rising to $23.7 billion in the third quarter before hitting the yearly peak of $34.3 billion in the fourth quarter.

Among the initiatives were governance-approved “fee holidays” for flagship markets such as BTC-USD and SOL-USD, which drove a two- to threefold increase in overall trading volume compared with mid-year levels. A multi-season trading competition was introduced to deepen liquidity and re-engage traders across varying market conditions. In addition, an incentive program known as “trading leagues” rewarded disciplined participation.

Protocol Revenue and Tokenomics Shift

The report also noted that the introduction of Telegram-native perpetual trading via the “Pocket Pro” bot helped reduce friction for new users entering the market. Commenting on the performance, Charles d’Haussy, CEO of the dYdX Foundation, said:

“The 2025 Annual Report reflects a year of structural progress for the dYdX ecosystem. Across execution, distribution, and governance, the focus remained on building durable foundations that support sustained participation and long-term alignment as on-chain derivatives continue to grow and mature.”

As trading activity recovered, protocol fees stabilized, closing the year at about $16.9 million. The report also highlighted a major shift in tokenomics, with Proposal 313 redirecting 75% of net protocol revenue toward the DYDX Buyback Program. As of Jan. 1, 2026, the program had bought and staked 8.46 million DYDX tokens to support network security.

By the end of 2025, dYdX offered 386 available markets and expanded its token holder base to 98,200, an 85% year-over-year increase. Foundation leadership said 2025 marked a turning point, with decentralized derivatives moving from early experimentation toward sustained, institutional-grade participation.

Other milestones in 2025 included the launch of native Solana spot trading, which expanded dYdX’s product offerings beyond perpetuals. A partnership with BONK extended dYdX’s distribution into one of the most active on-chain communities, pairing protocol-grade liquidity with community-native access points.