The decentralised trading platform dYdX has been enjoying a boom lately, and this is reflected in its token price, which has tripled since the beginning of the year.
DYdX’s governance token is up sharply
Since the beginning of the year, the cryptocurrency market has been on the rise again, and in the midst of this trend, the governance token of the decentralized trading protocol dYdX stands out in particular. Over the course of Tuesday, the asset continued its strong momentum with a 28% rise, which represents a gain of around 193% since the start of the bullish leg initiated on December 30 last year:
Rising token price of dYdX
While the short-term trend is common to most cryptocurrencies, there are two main factors that can explain this particularly notable surge.
The first reason is of course the fall of the FTX platform. Many traders liked this platform because of the convenience it offered on derivatives. When it exploded in mid-air, these players looked for other ways to trade perpetual contracts, and the decentralised solution of dYdX was able to capture some of this demand.
Another reason may lie in the extension of the 150 million DYDX lock-up period to the first of December this year. The news was particularly well received on 25 January, which allowed the token to double in price in just a few days.
A busy 2022
This week, the dYdX Foundation released its first annual report on the achievements of the decentralised trading protocol in 2022. The report shows that since the platform’s inception, it has generated $466.3 billion in cumulative volume for $137.8 million in fees.
Furthermore, the adoption of dYdX has seen an average growth of 4.2% more active traders per epoch. On the protocol, an epoch is a 28-day period.
The growth in 2022 was also reflected in the community aspect of the protocol, with 62.5% more followers on Twitter and a 390% increase in members on Discord.
It should also be added that while the application currently runs on StarkWare, a solution for scaling Ethereum (ETH), dYdX is due to migrate to the Cosmos ecosystem (ATOM) this year with the arrival of V4. Indeed, this redesign of the platform is expressed with its mainnet announced at the end of September for the moment.
If it is a question of not getting carried away, dYdX remains a promising solution, whose future evolutions should be followed attentively.
