DYDX price expected to fall further as whales dump tokens after massive unlock event


  • DYDX tokens equivalent to 83.2% of the asset’s circulating supply have been unlocked on Friday.
  • Large wallet investors holding DYDX sent nearly 7.75 million tokens to centralized and decentralized exchanges in the past 24 hours.
  • DYDX price suffered a decline of nearly 5% in the past day.

DYDX, the native token of a decentralized exchange, unlocked 150 million tokens, worth $485 million, early on Friday. Following the event, large wallet investors sent their holdings to centralized and decentralized exchanges. This increases selling pressure on the asset, supporting a bearish thesis for price. 

Also read: Bitcoin less than 21,000 blocks away from fourth halving, financial advisors await Spot ETF approval

DYDX token unlock complete, asset reserves on exchanges climb

The asset’s climbing reserves on exchanges have a direct impact on the selling pressure and thereby the price of the token. A rise in the token’s reserves on exchanges negatively influences asset prices. 

DYDX tokens have started flooding exchanges in large numbers, as noted by on-chain data tracker Spot on Chain. Three whale wallets that received DYDX tokens from the dYdX Foundation Wallet have transferred 6.81 million tokens worth $21.46 million to Binance.

Interestingly, DYDX tokens that were unlocked and distributed to investors who bridged the tokens, meaning, sent them to the native dYdX chain, will not be able to sell them on centralized exchanges. This is expected to keep selling pressure from hitting a peak. 

For example, a16z, an investor in dYdX has bridged 42.69 million DYDX tokens and when unlocked, the investor won’t be able to sell these assets. For the investor to sell these assets, a centralized exchange needs to announce support for the dYdX chain.

However, there are whale-wallet investors that have not chosen to bridge their holdings and these tokens are likely hitting exchange wallets, like the $21.46 million worth of assets that were sent to Binance by the wallet addresses that received unlocked tokens on December 1.

The data tracker identified 6.25 million DYDX deposits, worth $20 million to Binance, within a 45 minute timeframe, early on Friday.

The following deposits/sales were made on Binance:

  • Whale wallet address 0xb0d deposited 5.63 million DYDX tokens worth $18.01 million
  • QCP Capital deposited 391,035 DYDX worth $1.26 million
  • Golda.eth wallet address 0x6d0 sold 87,174 DYDX tokens worth $280,829
  • Wallet address 0xFAD sold 66,000 DYDX tokens worth $210,173
  • Wallet address 0x17b sold 75,000 DYDX tokens worth $237,184

According to data from Santiment, 7.75 million DYDX tokens entered centralized and decentralized exchanges on Friday, represented by a large spike.

dYdX

Exchange flow balance DYDX and price

DYDX price is $3.099, at the time of writing. The asset suffered nearly 5% decline in its price on Binance, in the past 24 hours.


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP