dYdX to Unlock Over 33 Million Tokens: Will Price Crash?

dYdX, a decentralized exchange (DEX), will unlock over 33 million DYDX worth approximately $90 million on February 1. This significant token unlock is the second event in the last week, following a previous unlocking on January 23.

dYdX To Unlock $90 Million Of Token: What Happens Next?

According to Token Unlocks on January 30, the release will see the protocol distribute $49 million of tokens to investors. At the same time, the team and future employees will each receive approximately $27 million and $12.5 million, respectively. 

How To Get Free Crypto  

DYDX unlock schedule | Source: Token Unlocks

The upcoming token unlock event is part of dYdX’s ongoing cliff unlock schedule, which will continue for the next five months. During this period, more DYDX will be unlocked.

For token holders, the frequency and size of these token unlocks raise concerns about the potential impact on DYDX prices. While some experts believe that the gradual unlock schedule will help mitigate any adverse effects, others fear that a deluge of DYDX into the secondary market could lower prices. 

DYDX price trending sideways on the daily chart | Source: DYDXUSDT on Binance, TradingView

So far, the token remains in a general uptrend, looking at the price action from a top-down preview. Presently, DYDX is changing hands at around $2.8. Though it is down 35% from the December 2023 peaks, bulls are optimistic. The token has support at about $2.3, and the uptrend formation remains valid, provided bulls reject any attempt lower below this reaction level.

The protocol still has over 60% of tokens locked up. Of this, 233.86 million have not been allocated a release timing. Additionally, Token Unlocks notes that in H2 2023, the protocol will decrease the amount of tokens it unlocks. For this reason, prices might stabilize and even rally should the market recover from the year’s rough start.

Coinbase Banner  

V3 Deployed, Adds New Features To Trading Platform

On January 29, dYdX Chain successfully deployed v3 at block height 7147832. The update introduced improvements impacting efficiency, trading performance, and general user experience. 

A big addition is the introduction of the Interchain Accounts Host Module, which enhances interoperability, reducing the time taken for users to switch between blockchains and manage assets. 

Moreover, the DYDX v3 sees the introduction of liquidation daemons. This system will make it easier for traders to manage their margin positions and execute liquidations. The protocol reduced their requirements to simplify margin management and onboard more users.

dYdX market statistics | Source: dYdX

As of January 30, the protocol has generated over $545 million in trading volumes. More than $37 million in open interest and over 411,000 unique trades are posted on the platform.

FreeBitcoin Banner  

Feature image from Canva, chart from TradingView

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Go to Source
Author: Dalmas Ngetich

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.