YEREVAN (CoinChapter.com) — DYDX, the token of the same-named DEX, has soared 40% to $4 in the previous 48 hours, bringing its month-to-date gains to 75%. Notably, the cryptocurrency benefits from the general surge in the crypto market following Grayscale’s re-filed application for a spot Bitcoin ETF on Oct. 19.
Thus, it doubled in price in the previous month. But there are more reasons involved.
The DYDX price rally came as the project, launched its layer-1 blockchain based on Cosmos, enabling validators to receive a portion of trading revenue as a reward for staking. In detail, OKX also opted for its blockchain and collaborated with Polygon.
DYDX Token Unlock Ahead
dYdX exchange is about to unlock a substantial number of its native dYdX tokens, initially slated for early February but now postponed to December 1, 2023. Initially, the exchange earmarked over 150 million dYdX tokens for release to early investors and founding team members.
In detail, a token unlock event releases a certain percentage of the token supply. It means the unlock could drop a coin’s price due to a correlation between the growing supply and the (presumably) steady demand.
However, the team revised this number and will release 83 million tokens in December, reducing the immediate increase in the token’s supply. The unlock event would increase DYDX’s circulating supply to over 333 million tokens.
DYDX Historical Performance After Supply Pumps
dYdX has held Trading Reward and Community Treasury unlocks of equal amounts (mainly 7.2 million DYDX) monthly since August 2021. Still, their short-term influence on the price could be construed as irregular, ranging from -10% to +10% in the following two days.
Notably, the previous unlock on Nov. 5 “unleashed” 7.2 million tokens. However, coinciding with the overall market surge, the resulting price change could not be attributed to the token unlock.
However, the following one, in December, will unlock 150 million coins, or 15% of the total supply, as mentioned, allocating DYDX coins to founders, investors, and employees. Considering the unlock’s size, it could influence the market more heavily.
