DYDX Token Unlock Event Raises Concerns
The native token of the decentralized exchange (DEX), DYDX, has experienced a recent surge in price after a slow start to August. However, there is growing skepticism about the sustainability of this upward momentum due to an upcoming token unlock event.
Key points:
– DYDX is set to unlock $13.82 million worth of tokens in a single event on August 29.
– This event is not uncommon in the cryptocurrency space, as many tokens have a locked supply that is released periodically.
– The unlocked tokens will be distributed to the community treasury, liquidity providers, and traders.
– Approximately 3.76% of the token’s current circulating supply will be released, with over 25% of the total supply unlocked after the event.
– There are concerns that the increased selling pressure from liquidity providers and traders could negatively impact the price of DYDX.
Historical data supports these concerns, as the price of DYDX struggled after a similar unlock event on August 1. The token lost nearly 10% of its value in a few days. Although the token has since recovered, there is a possibility of it falling below the $2 level again.
As of now, the DYDX token is trading at $2.12, reflecting a 1.7% price dip in the last 24 hours. There has also been a decline in the token’s daily trading volume, indicating reduced market activity.
Hot Take:
The upcoming token unlock event for DYDX raises concerns about the potential impact on the token’s price. Given the historical data and the possibility of increased selling pressure, it is uncertain whether DYDX’s recent positive performance will be sustained. Crypto investors should closely monitor the market and consider the potential risks before making any investment decisions.
By
By
By
