DeFi: USD/JPY Trading Volume Surpasses Bitcoin on Gains Network, A Shift in DeFi Trading

In the ever-evolving world of cryptocurrency and decentralized finance (DeFi), an interesting trend is emerging. Early Thursday, a remarkable event took place on the Gains Network platform that sent ripples through the world of digital assets. A large leveraged short position in the USD/JPY pair, worth an impressive $8.26 million, crossed the tape on Gains Network, marking a significant shift in trading patterns. The U.S. dollar-Japanese yen (USD/JPY) pair has now surpassed the once-dominant bitcoin-dollar pair (BTC/USD) as the most traded asset on this DeFi leveraged trading platform. This article delves into this intriguing development, exploring the factors driving this shift and what it means for the broader cryptocurrency and DeFi landscape.

The Rise of Gains Network

Gains Network, initially released on Polygon and later on Arbitrum, has been gaining prominence in the DeFi world. It offers users the unique opportunity to trade financial derivatives of cryptocurrencies, foreign exchange, and commodities through smart contracts, matching buy-sell orders efficiently. This platform’s versatility and accessibility have attracted traders looking for diverse trading options beyond the traditional crypto space.


The USD/JPY pair has emerged as the new king of the hill with a registered trading volume of $21.64 million in the past 24 hours, nearly 40% greater than BTC/USD’s $15.51 million. It’s not just a one-time feat; it consistently maintains the highest trading volume among all assets on Gains Network. To put this in perspective, the GBP/USD pair is the third most traded, with EUR/JPY taking the fifth spot. This data underscores the growing preference for trading traditional fiat currencies over cryptocurrencies within the DeFi ecosystem.

A Growing Trend

The USD/JPY pair’s dominance isn’t just a daily occurrence. It has maintained its position as the fourth most traded asset over the past seven and 30 days. This sustained popularity highlights the enduring appeal of forex trading within the DeFi space. The appeal of trading USD/JPY and similar forex pairs may be attributed to the well-established forex market’s stability and predictable behavior.

Challenges and Opportunities

While the surge in USD/JPY trading on Gains Network is impressive, it’s essential to consider the broader context. The global foreign exchange market boasts a daily turnover of over $7 trillion, dwarfing the trading volumes in DeFi platforms. Bringing a substantial chunk of this market onto a decentralized platform is no small feat, especially when considering scalability issues. This development, however, signifies a growing interest in merging traditional finance with DeFi.

Betting on Yen Strength

On that fateful Thursday, some traders on Gains’ Arbitrum-based platform took substantial leveraged short positions in USD/JPY and EUR/JPY pairs, banking on the Japanese yen’s appreciation. This move could be seen as an anticipation of the Bank of Japan’s intervention in the foreign exchange markets to halt the yen’s slide. The yen bulls have faced disappointment this year, with USD/JPY rising by a staggering 14.7% to 150.00. Recent pricing of USD/JPY options suggests expectations for significant fluctuations in the exchange rate.

A Noteworthy Trade

Market observers have taken notice of these substantial trades. “Someone betting big on @GainsNetwork_io on a Bank of Japan intervention in the JPY fx markets,” commented a pseudonymous market observer known as DefiMoon. He continued, “The last time USD/JPY got above 150 in October 2022; the BoJ stepped up bigly.” These trades are significant and, according to DefiMoon, probably the biggest forex trades on Gains Network since its launch.

The USD/JPY Short Position

The trader behind the USD/JPY short position put down a substantial $179.6K in collateral to secure a bearish bet worth a whopping $8.26 million. Notably, the EUR/JPY short position is also significant, valued at $8.48 million.


In the ever-evolving world of DeFi and cryptocurrency, the ascendancy of the USD/JPY pair over BTC/USD on the Gains Network is a testament to the dynamic nature of financial markets. Traders are showing a keen interest in trading traditional forex pairs within the DeFi ecosystem, and this shift is likely to have far-reaching implications. As we witness these exciting developments, it’s clear that the line between traditional finance and DeFi is blurring, opening up new opportunities and challenges.

Frequently Asked Questions

  1. What is Gains Network, and how does it differ from other DeFi platforms?

    Gains Network is a DeFi platform that allows users to trade financial derivatives of cryptocurrencies, foreign exchange, and commodities using smart contracts. Its unique selling point lies in its versatility and accessibility, attracting traders looking for diverse trading options beyond traditional crypto assets.

  2. Why is the USD/JPY pair gaining prominence in DeFi trading?

    The USD/JPY pair’s rise can be attributed to its consistently high trading volume on Gains Network, outpacing the once-dominant BTC/USD pair. Traders seem to prefer the stability and predictability of forex trading within the DeFi space.

  3. What challenges does DeFi face when attempting to bring traditional financial markets onto decentralized platforms?

    DeFi platforms like Gains Network, despite their popularity, still face scalability issues when compared to the enormous global foreign exchange market, which boasts a daily turnover of over $7 trillion.

  4. Why are traders betting on yen strength with substantial leveraged short positions?

    Some traders are anticipating the Bank of Japan’s intervention in the foreign exchange markets to halt the yen’s slide. This is in response to the yen’s disappointing performance this year and expectations of significant fluctuations in the USD/JPY exchange rate.

  5. What does the significant USD/JPY short position on Gains Network signify for the DeFi ecosystem?

    The substantial USD/JPY short position indicates a growing interest in merging traditional forex trading with DeFi. This trend blurs the line between traditional finance and decentralized finance, presenting new opportunities and challenges for the DeFi ecosystem.