DYDX tackles TVL decline by integrating Slinky in hopes of price recovery
|- DYDX is integrating Slinky in the process of building its own application chain.
- DYDX has seen a nearly 5% decline in the Total Value of assets Locked on its Layer 1 blockchain this week.
- The price of the native token of DYDX exchange is down nearly 5% since March 19 token unlock.
DYDX, a decentralized exchange’s native token, experienced a 5% price decline in response to the recent unlock event on Tuesday. The Layer 1 blockchain has seen the Total Value of assets Locked (TVL) drop by nearly 5% on a weekly timeframe.
Founder Antonio Juliano announced late Thursday, a technical integration that could boost the DYDX ecosystem’s utility and demand, likely fueling a recovery of the price of its token too.
Also read: Can DYDX price overcome two critical hurdles and rally 25%?
DYDX suffers from declining TVL
DYDX chain’s TVL – the value of all crypto assets locked in a chain – is at $384.45 million, down 5% compared with a week earlier. The TVL is a key metric since it gives an overview of an asset’s relevance and demand among market participants.
dYdX TVL. Source: DappRadar
Antonio Juliano, the founder of the Layer 1 blockchain, announced late Thursday on his official X account that DYDX is integrating a Cosmos-based Oracle called Slinky, a system that connects off-chain data to the blockchain
dYdX is currently integrating Slinky
— Antonio | dYdX (@AntonioMJuliano) March 21, 2024
Live soon https://t.co/o9eJtOeqoe
dYdX is currently integrating Slinky
— Antonio | dYdX (@AntonioMJuliano) March 21, 2024
Live soon https://t.co/o9eJtOeqoe
The integration of a Cosmos-based Oracle could boost the utility and effectiveness of the DYDX chain.
DYDX price hit by recent unlock
DYDX tokens worth nearly $7 million were unlocked on Tuesday, representing nearly 1% of the asset’s circulating supply, according to data from Tokenunlocks. The token’s price dropped nearly 13% intraday in response to the unlock. Since then, DYDX price recovered and climbed to $3.292, nearly erasing the recent losses.
The recent technical upgrade to the Layer 1 blockchain and subsequent demand from traders could catalyze gains for DYDX.
However, any recovery is subject to the demand for the Layer 1 token, buying pressure on crypto exchanges, and the smooth integration of ongoing technical upgrades.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.