dYdX sees significant token inflow to exchanges ahead of two major unlock events
- dYdX tokens worth $11.38 million hit centralized exchanges in the past week, after dormant whales moved their holdings.
- More than 152 million dYdX tokens will be unlocked in two events within the next two weeks.
- dYdX price is likely to face intense selling pressure as its circulating supply doubles after the token unlocks.
dYdX, the governance token for the Layer 2 protocol of a decentralized exchange, is likely to face intense selling pressure within the next two weeks. The token is set to see a spike in circulating supply as 152.16 million dYdX is unlocked.
Also read: dYdX price could crumble under pressure from rising exchange reserves
dYdX tokens hit centralized exchanges as whales move
Based on data from crypto intelligence tracker SpotOnChain, dormant whales have recently deposited their dYdX token holdings to centralized exchange platforms. A large wallet investor that was dormant for two years deposited 1.2 million tokens worth $4.81 million, while another whale deposited 1.1 million tokens worth $4.47 million. Both transfers were made to crypto exchange Kraken.
Dormant whale deposits dYdX to Kraken
Whale wallet sends $4.47 million worth of dYdX to Kraken
On November 13, a wallet address associated with digital asset firm Amber Group deposited 500,000 dYdX to Binance. These moves by large wallet addresses took place ahead of the upcoming token unlock events.
According to data from token.unlocks.app, 2.16 million dYdX tokens will be unlocked on November 28 and 150 million of the governance tokens will enter circulation on December 1. These unlock events will double dYdX’s circulating supply, increasing the selling pressure on the DEX’s governance token.
At the time of writing, dYdX price is $4.062, up 2.69% on the day, according to data from Binance. The asset yielded 61.61% weekly gains for holders, and doubled its price over the past month.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
