Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

dYdX registers unprecedented increase in its value; the reason is surprising

2min Read
dYdX registers unprecedented increase in its value; the reason is surprising

Share this article

  • dYdX has seen an increase of over 30% in the last 48 hours.
  • dYdX’s increase in value began after the exchange announced the postponement of its token unlock.

The price of dYdX has significantly increased during the last day, possibly at the most significant rate of increase year to date. The primary driver of the price increase was a recent announcement by the project itself, while other variables also played a role.


Read dYdX Price Prediction 2023-24


dYdX announced token unlock reschedule

On 25 January, dYdX stated on its blog that it would postpone the token unlock until the fourth quarter of 2018. Token distribution to early investors and dYdX founding team members was initially scheduled for 3 February but has been postponed until December.

Next month’s planned supply increase will be lowered by 83 million tokens. Those tokens will now be assigned to investors and unlocked on 1 December. There are currently roughly 156 million in circulation, with a total of 1 billion, set to be issued.

The price of the derivative’s exchange token experienced a sharp increase upon the announcement as intense buying pressure started.

Exchange Inflow picks up as holders increase

According to the exchange’s announcement, the unlock will ultimately happen, which means the current trend may change once it is unlocked. A review of dYdX flow data revealed a significant influx into exchanges.

Glassnode records show a Netflow of almost 2 million, with more money flowing into exchanges than out. The data shows that investors are looking to lock in profits and are not anticipating any future increases. Continuous influx may result in a price decline and a price reversal.

dYdX netflow stats

Source: Crypto Quant

However, despite the long-term decline that the token would experience, it was still drawing new users every day. According to data from Dune Analytics, the token holders by Week metrics have risen.

Over 25,000 holders were registered as of the time of writing, with over 300 more joinings each week. It may be difficult to determine if they are being held for short or extended periods.

dYdX holders in profit as price rises

Additionally, the 30-day Market Value to Realized Value ratio showed that owners of dYdX tokens were profitable. The token was over 22% in profit, according to the 30-day MVRV. Holders at the current stage within the previous 30 days could still take gains, despite the graph indicating a downturn.

dYdX profit ratio

Source: Santiment

On a daily timeframe, dYdX was trading at about $2 and had increased by more than 7% during the observation period. The token gained 24.85% during the last trading period, increasing the overall gain within the preceding 48 hours to above 30%. Moreover, the increase effectively raised the token above both the long and short Moving Averages (blue and yellow lines).


-How much is 1,10,100dYdXs worth today


dYdX price move

Source: Trading View

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.