Gains Network, a decentralized finance (DeFi) leveraged trading platform, reports that the most traded pair these days is the U.S. dollar-Japanese yen (USD/JPY), surpassing the bitcoin-dollar combination (BTC/USD). Gains Network allows users to trade financial derivatives of cryptocurrencies, foreign exchange, and commodities by matching buy-sell orders using smart contracts. It was first released on Polygon and then subsequently on Arbitrum.
According to data from Dune Analytics, the USD/JPY pair had the greatest trading volume of all assets during the last 24 hours, with $21.64 million, over 40% more than BTC/USD’s $15.51 million. The third most traded pair is GBP/USD, followed by EUR/JPY in fifth place. Additionally, over the last seventy-three days, the dollar-yen pair has been exchanged the fourth most. These numbers suggest that trading traditional markets over DeFi rails is becoming more and more popular.
However, given scalability concerns, it is more difficult to move a sizable chunk of the global foreign exchange market—which has a daily turnover of over $7 trillion—to a decentralized platform. On Gains’ Arbitrum-based platform early on Thursday, a few traders took sizable leveraged short positions in the USD/JPY and EUR/JPY pairs, placing bets on the Japanese yen strengthening. These market players might anticipate that in order to stop the yen’s decline, the Bank of Japan will step in and manipulate the foreign exchange markets. With the USD/JPY increasing 14.7% to 150.00 this year, the yen bulls have been let down. The recent pricing of USD/JPY options points to predictions for extreme fluctuations in the currency market.