Decentralized Exchange dYdX Unlocks 150 Million Tokens
Recently, dYdX, a decentralized exchange, unlocked 150 million tokens, which accounted for 30% of the tokens allocated to investors, founders, and employees. This unlocking event took place on December 1st.
Despite the token unlock, the native cryptocurrency of dYdX, DYDX, only experienced a minor decline of 2%.
Whales Transfer Tokens for Sale on Binance
Following the token unlock, three whale accounts that received these unlocked tokens have transferred their allocated tokens for sale on Binance.
The first wallet transferred 5.63 million DYDX tokens to Binance, worth $17.73 million. The second wallet transferred 793,286 DYDX tokens to the exchange, equivalent to $2.5 million. The third wallet transferred 391,036 DYDX tokens to Binance, worth $1.23 million.
These three wallets collectively moved 6.81 million DYDX tokens valued at $21.46 million to Binance. However, some investors have bridged DYDX despite the selling pressure.
No Significant Price Decline for dYdX
Usually, token unlocks are seen as bearish events due to the sudden increase in token supply. Surprisingly, dYdX’s price did not experience a significant decline after this unlocking event.
Although there was a slight downward pressure on the value of DYDX due to the influx of tokens on the exchange, causing a temporary dip to $3.08, the price quickly rebounded to $3.18 within 24 hours. However, the trading volume decreased by 5% during the same period.
dYdX’s Transition to Standalone Blockchain
dYdX, the decentralized crypto derivatives exchange, released the open-source code for its upcoming version 4 in October. The new dYdX Chain, built on the Cosmos SDK and leveraging the Tendermint Proof-of-Stake consensus protocol, is expected to handle up to 2,000 transactions per second.
This move represents dYdX’s transition from the Ethereum layer-2 network to its independent blockchain using Cosmos.
Hot Take: dYdX Token Unlock and Price Stability
The recent token unlock of dYdX did not result in a significant decline in price, contrary to typical expectations. Despite the influx of tokens on Binance and a temporary dip in value, the price quickly recovered. This demonstrates the resilience and stability of dYdX in the face of token unlocks and selling pressure.
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