Try Quests to earn cryptoIn the News - 13. DYDX Unlock
The Question
DYDX holders are bracing for a massive event next month, as 105% of the circulating supply will be distributed to investors and team members.
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Have holders begun preparing for this massive unlock? If so, what actions are they taking to prepare? How do you expect the market to react in the weeks leading up to and following the unlock? Back up your assertions with data.
Introduction
What is dYdX?
dYdX is a decentralized exchange (DEX) platform that offers perpetual trading options for over 35 popular cryptocurrencies including Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE) and Cardano (ADA). It stands as one of the biggest decentralized exchanges in the world in terms of trading volume and market share.
dYdX was founded by Antonio Juliano, a California-based entrepreneur, in August 2017. The exchange was launched in July 2017 initially offering crypto margin trading, lending and borrowing services over Ethereum layer-1.
Fast-forward to August 2021, the dYdX exchange started offering cross-margin perpetual trading. In cross-margin trading, users can repurpose their available balance on the platform to provide liquidity to existing trades — a popular method to avoid liquidations during high volatility.
The dYdX protocol was built over the Ethereum smart contracts and STARK (zero-knowledge) Rollups powered by Starkware. The platform started its journey in the cryptosphere by offering spot trading and has since relaunched three iterations of its services to decentralize its components. As a way to decentralize the exchange, most of the dYdX exchange is built on trustless protocols, which are publicly extensible without any permission.
This article walks through the various products offered on the dYdX exchange and helps identify investment opportunities within the decentralized trading landscape.
Perpetual trading/contracts vs. traditional contracts vs. spot trading
To know exactly how dYdX works, one needs to understand the various trading options available in the market and the major differences between them.
Perpetual futures contracts, or simply, perpetual contracts allow users and investors to place a buy or sell order at a fixed price indefinitely i.e., with no expiry date. This differs from spot trading, which involves selling or buying cryptocurrencies instantaneously based on the market price. On the other hand, traditional futures contracts have a time limit on every order, which automatically collapses once the time has expired.
As a decentralized exchange, dYdX is primarily home to perpetual markets that eventually branched out to offer spot and margin trading on the Ethereum layer-1 blockchain and layer-2 cross-margined perpetuals.
Trading options on the dYdX exchange
dYdX is one of the leading decentralized exchanges that offer layer-2 perpetual trading options, nonfungible token (NFT) collections for community building, and a Ropsten Ethereum testnet for projects that seek risk-free testing environments.
Over the years, as dYdX continues to pursue its goal of fully decentralizing, the exchange followed an incremental approach in releasing new service offerings. The dYdX exchange has four key products: perpetual trading, governance, staking and NFTs.
Methodology
This dashboard consists of ==three== main parts.The first part displays the daily DyDx price Daily avg price and 100 days price moving avg. In the second part, you can see the ==update== status of holders, number, total token value, average, median, maximum and minimum balance amount related to $DYDX. Also, the number and distribution of holders based on their balance amount will be presented and updated daily. Also, to better understand the changes over time, these items are also presented for last year.
In the third part, you can see the top 50 holders for today (updated daily) and compare them with the top 50 holders at the beginning of the year. The change in the total amount of the balance in terms of the native token as well as the dollar value, the number of subscriptions of the top 50 new holders compared to the last year and some other useful information will be available to you in this section.
the following section discusses about $DYDX interaction with sectors and shows the daily interactions with different sectors using this token.the following sections also reveals the transfer, swap and staking stats related to DyDx token.
Observations
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total Holders 654
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total token in wallets 3.7 B
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Max token holding 32.4M
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avg token holding 1.79M
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Median token holding 6060
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38% of holders , Hold under 10 $DYDXin their wallets (This index has decreased significantly compared to last year. The number of holders has increased compared to last year.)
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Observations
The balance value of the top 50 holders in today's date is 63.8M. Last year, the total balance of the top 5 holders was 45.5M. As a result, it can be said that the top holders have become more powerful by increasing the balance by 40%. But the dollar value of their assets has dropped by 57% (due to the decrease in the value of the $DYDX token).
18 of the top 50 holders are unchanged from last year and 32have changed.
Observations
- Looking at the price chart, it is clear that this token has experienced a significant jump in price since the beginning of the new year. As can be seen, the bearish trend has been broken after a long time and the price has changed direction to the upside after hitting the 100-day moving average.
Looking at the results :
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In recent days, the number of transfers related to this token has increased significantly. As can be seen, this amount has increased from 2M in early January to 23 million on January 23rd.
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These positive changes are evident in the number of transactions as well as the number of users.
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After December 27th, users started transferring these tokens to CEXs. So that more than 52% of the daily transfer volume has changed to, to Cexs.
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Observations
- As it is clear from the results, in recent days, especially from December 22, 2022 onwards, a significant jump in the amount of unstake has happened. So that 100% of the volume and related transactions in this field are assigned to UNstaking.
Observations
- In recent days, the number of swaps in and out related to this token has increased significantly. As can be seen, this amounts has increased from 25-40k in early January to more than 1 million on January 23rd.
- In terms of txn and user count, swap in was superior, but in terms of volume, it was relatively superior to swap out.
- WETH was the most popular token to swap to/from DYDX token.
Conclusion
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$DYDX has experienced a significant jump in price since the beginning of the new year, reaching 1.78 from 1.03 $.
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38% of holders , Hold under 10 $DYDXin their wallets (This index has decreased significantly compared to last year. The number of holders has increased compared to last year.)
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the top holders have become more powerful by increasing the balance by 40%. But the dollar value of their assets has dropped by 57% (due to the decrease in the value of the $DYDX token).
18 of the top 50 holders are unchanged from last year and 32have changed.
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in recent days, users’ interaction with CEXs has greatly increased. In the past weeks, this sector included about 3-40% of the daily transactions and volume, but in recent days, it has reached more than 90% with a significant increase.
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In recent days, the number of transfers related to this token has increased significantly. As can be seen, this amount has increased from 2M in early January to 23 million on January 23rd.
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in recent days, especially from December 22, 2022 onwards, a significant jump in the amount of unstake has happened. So that 100% of the volume and related transactions in this field are assigned to UNstaking.
Observations
- It seems that in recent days, users’ interaction with CEXs has greatly increased. In the past weeks, this sector included about 3-40% of the daily transactions and volume, but in recent days, it has reached more than 90% with a significant increase.
- in terms of the number of transactions, DEX became more popular in the recent days.
- In the following, we will examine whether these interactions were towards CEX or outward from CEX.
