DYDX price expected to fall further as whales dump tokens after massive unlock event


Share:
  • DYDX tokens equivalent to 83.2% of the asset’s circulating supply have been unlocked on Friday.
  • Large wallet investors holding DYDX sent nearly 7.75 million tokens to centralized and decentralized exchanges in the past 24 hours.
  • DYDX price suffered a decline of nearly 5% in the past day.

DYDX, the native token of a decentralized exchange, unlocked 150 million tokens, worth $485 million, early on Friday. Following the event, large wallet investors sent their holdings to centralized and decentralized exchanges. This increases selling pressure on the asset, supporting a bearish thesis for price. 

Also read: Bitcoin less than 21,000 blocks away from fourth halving, financial advisors await Spot ETF approval

DYDX token unlock complete, asset reserves on exchanges climb

The asset’s climbing reserves on exchanges have a direct impact on the selling pressure and thereby the price of the token. A rise in the token’s reserves on exchanges negatively influences asset prices. 

DYDX tokens have started flooding exchanges in large numbers, as noted by on-chain data tracker Spot on Chain. Three whale wallets that received DYDX tokens from the dYdX Foundation Wallet have transferred 6.81 million tokens worth $21.46 million to Binance.

Interestingly, DYDX tokens that were unlocked and distributed to investors who bridged the tokens, meaning, sent them to the native dYdX chain, will not be able to sell them on centralized exchanges. This is expected to keep selling pressure from hitting a peak. 

For example, a16z, an investor in dYdX has bridged 42.69 million DYDX tokens and when unlocked, the investor won’t be able to sell these assets. For the investor to sell these assets, a centralized exchange needs to announce support for the dYdX chain.

However, there are whale-wallet investors that have not chosen to bridge their holdings and these tokens are likely hitting exchange wallets, like the $21.46 million worth of assets that were sent to Binance by the wallet addresses that received unlocked tokens on December 1.

The data tracker identified 6.25 million DYDX deposits, worth $20 million to Binance, within a 45 minute timeframe, early on Friday.

The following deposits/sales were made on Binance:

  • Whale wallet address 0xb0d deposited 5.63 million DYDX tokens worth $18.01 million
  • QCP Capital deposited 391,035 DYDX worth $1.26 million
  • Golda.eth wallet address 0x6d0 sold 87,174 DYDX tokens worth $280,829
  • Wallet address 0xFAD sold 66,000 DYDX tokens worth $210,173
  • Wallet address 0x17b sold 75,000 DYDX tokens worth $237,184

According to data from Santiment, 7.75 million DYDX tokens entered centralized and decentralized exchanges on Friday, represented by a large spike.

dYdX

Exchange flow balance DYDX and price

DYDX price is $3.099, at the time of writing. The asset suffered nearly 5% decline in its price on Binance, in the past 24 hours.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Bitcoin price extends gains as capital inflows near all-time highs

Bitcoin price extends gains as capital inflows near all-time highs

Bitcoin (BTC) price remains northbound, a status that was invigorated by Monday reports on MicroStrategy and BlackRock. With growing optimism in the market, the risk appetite for investors is also proving elastic. 

More Bitcoin News

Stacks price soars 15% to a new all-time high as STX TVL peaks

Stacks price soars 15% to a new all-time high as STX TVL peaks

Stacks (STX) price is on a tear, following on the heels of the Bitcoin price surge, which shocked markets on Monday blasting past $57,000 and blowing $100 million in short positions out of the water.

More Crypto News

Blast gears up for February 29 mainnet launch, crosses $2 billion TVL

Blast gears up for February 29 mainnet launch, crosses $2 billion TVL

Blast, a project designed to support Blur with Layer 2 solutions, is close to its mainnet launch on February 29. Market participants have locked over $2 billion in crypto assets in Blast’s bridge to earn yield and Blast points. 

More Crypto News

TRON announces partnership with EVM-compatible chain for Bitcoin integration

TRON announces partnership with EVM-compatible chain for Bitcoin integration

TRON recently unveiled its roadmap for integrating with the Bitcoin blockchain. Justin Sun’s X post explains how TRON will take steps to integrate its ecosystem assets with the Bitcoin blockchain and support BTC Layer 2 solutions. 

More Cryptocurrencies News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP