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The token of the same name for a decentralized crypto derivatives exchange, dYdX, has risen more than 35% in the past few days. The primary reason for the rapid rise could be attributed to the collapse of a major centralized exchange, FTX. According to on-chain analytics portal Santiment, mid-sized DYDX holders were among the main beneficiaries of the FTX collapse, which took billions of dollars off the market.
According to on-chain data, addresses holding between 1,000 and 10,000 DYDX have been actively accumulating cryptocurrency since late summer. The highest volumes of DYDX purchased by this group of investors occurred in early November, around the time the FTX insolvency news broke.
🦈 Perhaps one of the larger beneficiaries of the @FTX_Official collapse is @dYdX and its native token, $DYDX. Smart money accumulated prior to prices surging this week. https://t.co/7MpPtgszXN
— Santiment (@santimentfeed) November 15, 2022
And check some of its key #onchain and social charts here: https://t.co/Qq93dZt9zP pic.twitter.com/3ZsQRNcscg
However, it cannot be said unequivocally that the exit of investors from centralized exchanges is the reason for the 35% rise in DYDX quotations. The tragic news about FTX was just another trigger, when in previous months the stimulus for accumulation was the news directly related to dYdX.
Arman ShirinyandYdX takes off to Cosmos
Thus, dYdX prepares to launch its own blockchain based on Cosmos (ATOM) software. The event could come as early as the end of this year. The DEX's merge will happen as part of the dYdX v4 update, with the goal of moving beyond the Ethereum ecosystem.
Given Ethereum's high degree of censorship following its move to PoS, and the fact that dYdX has been subject to blocking addresses seen using sub-sanctioned services, the exchange's decision to become more self-sufficient seems great — especially as its trading volume already exceeds $3.5 billion.
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team