Share this article
DYDX Pumps Ahead of Massive $500M Token Unlock
The decentralized exchange debuted its layer 1 blockchain based on Cosmos this week.
Updated Nov 15, 2023, 10:24 a.m. Published Nov 15, 2023, 10:24 a.m.
DYDX, the native token of the newly-released dYdX chain, has risen by more than 20% in the past 24 hours, just 16 days before more than $500 million worth of tokens will be unlocked to early investors and core team members.
The surge in the DYDX price comes as the project, previously just a decentralized exchange (DEX), launched its layer-1 blockchain based on Cosmos – a move that enables validators to receive a portion of trading revenue as a reward for staking.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Over the past 30 days, DYDX has more than doubled in price as speculators anticipated the token's migration from Ethereum to the dYdX chain. However, a large token unlock in just over two weeks has the potential to damp spirits. There are 179 million DYDX tokens in circulation, and the upcoming unlock will increase that to 395 million, according to token.unlocks.
The unlock was meant to take place in January this year, but was shelved until December, a decision that spurred an initial price hike earlier this year.
Research published earlier this year from The Tie reveals that large token unlocks lead to a decline in price as demand for the asset can't keep pace with the increase in supply, known as inflation.
DYdX CEO Antonio Juliano has attempted to remedy that by incentivizing staking, a method that involves locking tokens on a blockchain to receive rewards. Juliano revealed on Tuesday that stakers will receive "cold hard USDC," for staking and that validators will receive 100% of trading fees. USDC is a dollar-pegged stablecoin.
More For You
L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below.
What to know:
2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.
This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.
More For You
Crypto prices again muted as gold surges to new record, U.S. stocks advance
Bitcoin for the moment was unable to hold the $90,000 level reached prior to the U.S. market open.
What to know:
- Crypto prices are slipping a little during the U.S. trading session as precious metals and stocks move higher.
- The AI trade remains strong, with bitcoin miners who have pivoted business models moving sharply higher.
- Both gold and silver hit new records Monday and one analyst said bitcoin can't rally until those metals cool.
Top Stories
