Benzinga - DYDX (CRYPTO: ETHDYDX), the native token of the dYdX chain, has witnessed a sharp increase of over 20% in value in the last day.
What Happened: This price rally occurs with anticipation building as a massive token unlock date approaches for early investors and core team members in just 16 days’ time.
dYdX, which began as a decentralized exchange (DEX), has recently expanded its operational capabilities with the launch of its own layer-1 blockchain built on Cosmos technology.
This strategic development has allowed for a new rewards system, where validators earn a share of trading revenues for their role in sustaining the network. Over the past month, DYDX’s price has more than doubled, largely fueled by speculator interest surrounding the token’s migration from the Ethereum (CRYPTO: ETH) blockchain to its native dYdX chain.
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Why It Matters: However, market optimism might be tested as the ecosystem braces for the release of over $500 million worth of tokens.
This unlock will bring the circulating supply from 179 million to 395 million DYDX tokens, as reported by token.unlocks. Initially slated for January, the deferred unlock to December has already played a role in a price surge earlier this year.
The concept of token unlocks is crucial in the context of cryptocurrencies, particularly because such events can lead to a market response akin to inflation.
Price Action: At the time of writing, dYdX was trading at $4.20 in the last 24 hours, according to Benzinga Pro.
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