{"id":154763,"date":"2021-01-14T21:19:40","date_gmt":"2021-01-14T18:19:40","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/0x-zrx-price-rallies-35-ahead-of-v4-mainnet-update\/"},"modified":"2021-01-14T21:19:40","modified_gmt":"2021-01-14T18:19:40","slug":"0x-zrx-price-rallies-35-ahead-of-v4-mainnet-update","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/0x-zrx-price-rallies-35-ahead-of-v4-mainnet-update\/","title":{"rendered":"# 0x (ZRX) price rallies 35% ahead of v4 mainnet update"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23b06b685b2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23b06b685b2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/0x-zrx-price-rallies-35-ahead-of-v4-mainnet-update\/#From_servers_to_service\" >From servers to service<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/0x-zrx-price-rallies-35-ahead-of-v4-mainnet-update\/#Market_makers_returns_and_v4_update\" >Market makers returns and v4 update<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/0x-zrx-price-rallies-35-ahead-of-v4-mainnet-update\/#Front-running_problem\" >Front-running problem<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 0x (ZRX) price rallies 35% ahead of v4 mainnet update <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Decentralized exchanges (DEX) are a giant leap in permissionless and transparent trading, and they exist as fantastic alternatives to centralized exchanges.\u00a0<\/p>\n<p>While DEXs ease the process of listing new ERC-20 tokens and remove the need to pay a central authority high listing fees, they stil have the issue of high gas fees. This is precisely the issue 0x Protocol (ZRX) aims to solve.<\/p>\n<p>The 0x Protocol (ZRX) ICO raised $24 million in August 2017 for 50% of its supply, with no pre-sale. As an ERC-20 token, the permissionless Protocol connects liquidity providers through smart contracts, therefore aggregating liquidity. <\/p>\n<p>The protocol allows interoperability between different decentralized <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications and DEXs. Thus, ZRX should not be seen as a Uniswap competitor, as it benefits from the sectors&#8217; increased liquidity.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/9d997182-09f2-4f6e-a06e-553cf2484ac1.png\"><figcaption style=\"text-align: center;\"><em>0x Protocol (ZRX) token price in USD. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Although the ZRX token has been quite volatile over the past weeks, there&#8217;s an uptrend happening as it tries to establish $0.50 as a support level after a 22% price increase past 24 hours.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"From_servers_to_service\"><\/span>From servers to service<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Initially launched as a voting mechanism for governance proposals, ZRX tokens received staking capabilities after its v3 update in late-2019. Market makers were then able to earn ETH rewards for liquidity providing services. Meanwhile, holders could benefit by delegating their tokens using pools.<\/p>\n<p>In June 2020, the project launched a DEX liquidity aggregator service, known as Matcha. After serving exclusively as a backbone for three years, 0x Protocol created a smart order routing service that encompasses DEX like Uniswp, Curve, and Kyber.<\/p>\n<p>Community and DEX activity are probably the most vital metrics for measuring DeFi token growth. Data from Dune Analytics shows that Uniswap and SushiSwap both account for over 60% of the volume but it\u2019s important to remember that liquidity aggregators are not direct competitors to 0x Protocol.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/8b318147-9fd2-4d8c-89f4-50d1c76cb54c.png\"><figcaption style=\"text-align: center;\"><em>Weekly DEX volume in USD. Source: Dune Analytics<\/em><\/figcaption><\/figure>\n<p>Therefore, the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> DEX market growth of the past year is actually a positive driver for ZRX token. Looking at 0x Protocol usage, we can see that 0x weekly volume more than doubled from the October to November $350 million weekly average, reaching 10% market share.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/bd510d3f-07ab-402e-a12c-c26bbcd2a4a6.png\"><figcaption style=\"text-align: center;\"><em>0x Protocol top apps activity past 30 days. Source: 0xtracker.com<\/em><\/figcaption><\/figure>\n<p>Taking a more detailed view of 0x network activity, the chart above shows that multiple platforms use 0x Protocol&#8217;s liquidity aggregation capabilities. These trades can take place at numerous DEXs, including Uniswap, Curve, and Balancer.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_makers_returns_and_v4_update\"><\/span>Market makers returns and v4 update<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Dec. 15, Theo Gonella, 0x Labs product manager, showed data from a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/theogonella\/status\/1338984883322908672\">market maker that made a 100% return<\/a> in 2020 by providing liquidity on 284 ETH across 41,000 trades. More recently, 0xTracker stated that 1,782 ETH were distributed to 0x market markers as liquidity rewards in 2020.<\/p>\n<p>The 0x Project v4 voting process will occur from Jan. 16 to Jan. 23 and aims to reduce requests for quotation gas costs by 70%. According to the 0x Labs blog, this version enables customizable modules to execute atomic operations, including token wrapping and unwrapping.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Front-running_problem\"><\/span>Front-running problem<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For those unfamiliar with front-running, the problem lies in on-chain data. Savvy arbitrage desks monitor Ethereum&#8217;s main chain for transactions, to then add extra gas on a similar trade and buy (or sell) the asset ahead of the other party. Thus, the higher fee transaction will be able to front-run other users&#8217; executions.<\/p>\n<p>Albeit not exclusively an 0x problem, this certainly limits DeFi aggregators use.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/a2532fe3-cf5f-4430-b21f-5593b3bc8fd1.png\"><figcaption style=\"text-align: center;\"><em>ZRX <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> user activity vs. price (USD). Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/vision.thetie.io\/\"><em>TheTie<\/em><\/a><\/figcaption><\/figure>\n<p>Data from TheTie shows that the recent price spike has been accompanied by increased social network activity. Nevertheless, the indicator remains 50% below the previous May and August peaks. Therefore, judging by social network metrics, there is possibly an enormous upside for ZRX price.<\/p>\n<p>0x Protocol may find further success as the DeFi sector continues to grow and mature. As long as there is a need for lower gas costs and multiple price providers, liquidity aggregators will have a void to fill. <\/p>\n<p>To conclude, for those who believe that the v4 update will be a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>-changer, there&#8217;s room for plenty of growth in DEX market share, and therefore price potential.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>autho<\/em><em>r<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/0x-zrx-price-rallies-35-ahead-of-v4-mainnet-update\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 0x (ZRX) price rallies 35% ahead of v4 mainnet update &#8221; Decentralized exchanges (DEX) are a giant leap in permissionless and transparent trading, and they exist as fantastic alternatives to centralized exchanges.\u00a0 While DEXs ease the process of listing new ERC-20 tokens and remove the need to pay a central authority high listing fees,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":154764,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/da2ea2f0-3700-4203-b1d2-f3686a039139.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,74894,74868,75916,74891,89577,73785],"class_list":["post-154763","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-blockchain","tag-defi","tag-dex","tag-ethereum","tag-zrx","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/154763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=154763"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/154763\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/154764"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=154763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=154763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=154763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}