In today’s article, you’ll first have an opportunity to get properly acquainted with the dYdX crypto project. We’ll explain what it is all about and further outline some of its core aspects.
However, as altcoin traders/investors, we’ll devote most of our attention to the DYDX crypto token. As such, you’ll have a chance to find out what this cryptocurrency is all about. We’ll explain DYDX’s purpose, use cases, and tokenomics.
Moreover, we’ll also analyze the $DYDX price. We’ll start with an overview of the asset’s price action since it started trading until now. Furthermore, we’ll use the basics of technical analysis (TA) to outline the token’s key support and resistance levels. Plus, we’ll run $DYDX by the ultimate crypto charting tool – Money Line. As such, we’ll be able to put the current price of the dYdX crypto into proper perspective.
In addition, you’ll also learn how to use the power of Moralis Money to help you determine if/when to buy $DYDX. And in case you decide to buy this DEX token, we’ll also ensure you find out where you can do that.
What is dYdX Crypto?
The “dYdX crypto” phrase is short for “dYdX cryptocurrency”. As such, it points to the DYDX token, which we’ll discuss further as we move forward.
However, as it is common in the Web3 sphere, using the word “crypto” tends to have a broader meaning. After all, it usually applies to every project that has anything to do with blockchain tech and cryptocurrencies.
With that in mind, it’s important to note that “dYdX crypto” also refers to the entire dYdX project, its platforms, and its networks.
So, if we want to answer the above question properly, we ought to take a closer look at this project and its native token. And that’s exactly what we will do in the upcoming sections.
Exploring the dYdX Crypto Project
The dYdX crypto project stands as a pioneering force in decentralized finance (DeFi). The project offers a comprehensive ecosystem that extends from a decentralized exchange to a blockchain network. At its core, dYdX is managed by a commitment to community-driven growth and innovation in the decentralized financial space.
The dYdX Foundation
Central to the project’s ethos is the dYdX Foundation, an independent not-for-profit entity based in Zug, Switzerland. Comprising esteemed members including Arthur Cheong, Rebecca Rettig, and Markus Spillman, the foundation plays a pivotal role in supporting the current implementation and future iterations of the dYdX protocol. The dYdX Foundation acts as a driving force behind community-driven growth, fostering a dynamic ecosystem for decentralized finance.
The foundation’s website links to a dashboard, which caters to the dYdX community. It allows $DYDX holders to participate in the governance of the project and to stake their native token:
The dYdX DEX
One of dYdX’s flagship offerings is its decentralized exchange (DEX). The latter has been redefining how users engage in trading within the DeFi landscape since its beginnings in 2021.
The DEX operates seamlessly, providing a gas-less trading experience where only maker and taker trading fees in USDC apply. This innovation enhances accessibility and efficiency, setting dYdX apart in the decentralized exchange arena.
Unlike most other DEXs, where users are limited to swapping tokens, with dYdX DEX, traders get to engage in perpetual trading. As such, they have an opportunity to deploy the power of leverage trading in a decentralized manner.
dYdX Chain
Expanding its influence, dYdX ventured into the realm of blockchain networks on October 26, 2023, with the launch of the dYdX chain. This proof-of-stake blockchain network, built on the Cosmos SDK and utilizing CometBFT for consensus, represents a significant milestone for the dYdX crypto project.
The dYdX Chain introduces a layer-1 (L1) protocol token, DYDX, that transforms from a governance token in dYdX v3 to a native token powering the network. Furthermore, $DYDX stakers and network validators contribute to the security and governance of the dYdX chain. The network distributes all collected fees to these participants to incentivize their efforts. This represents an alignment of incentives to ensure a robust and secure ecosystem.
Note: If you wish to explore the dYdX project in detail, make sure to dive into its documentation.
What is the DYDX Crypto Token?
The DYDX token is the native cryptocurrency fueling the dynamic dYdX ecosystem. The token was originally launched in July 2021 as an ERC-20 token on Ethereum. That version of dYdX is now known as ethDYDX.
However, with the advent of the dYdX chain, the asset underwent a transformative evolution. The dYdX token that lives on the dYdX chain is known as DYDX. This shift reflects a significant move from being a governance token within dYdX v3 to becoming the primary L1 protocol token.
It’s worth noting that users can now migrate ethDYDX to DYDX. The project has a dedicated section in docs regarding this process.
$DYDX’s Purpose and Use Cases
With the birth of the dYdX chain, the DYDX crypto token’s purpose extended significantly. After all, the asset now plays a crucial role in securing the dYdX network through a staking mechanism.
Through $DYDX, the chain’s stakers and validators actively contribute to the consensus process, network security, and governance decisions. Moreover, DYDX holders are incentivized to participate actively in the ecosystem, as all fees generated within the dYdX chain, including trading fees and gas fees, are distributed to stakers and validators.
Tokenomics
DYDX’s tokenomics are intricately designed to align with the objectives of a secure and robust decentralized financial ecosystem. For instance, the protocol allows stakers and validators to set individual commission rates, ranging from 5% to 100%, which offers a flexible rewards mechanism.
Moreover, the $DYDX staking parameters include a cap on the number of validators, a minimum commission rate, and an un-bonding period. So, as the dYdX chain evolves, these $DYDX tokenomics may adapt through community-driven governance processes.
The maximum total supply of $DYDX is currently set at 1,000,000,000; however, this number is subject to a potential increase.
Overview of the DYDX cryptocurrency tokenomics:
- Token on-chain name: dYdX
- Symbol/ticker: DYDX or $DYDX; also ethDYDX (on Ethereum)
- Networks: Ethereum (ethDYDX), dYdX Chain
- Token type: ERC-20 (on Ethereum), IBC (native)
- Smart contract address: 0x92d6c1e31e14520e676a687f0a93788b716beff5 (on Ethereum); ibc/831F0B1BBB1D08A2B75311892876D71565478C532967545476DF4C2D7492E48C (native)
- Maximum total supply: 1,000,000,000 $DYDX
- Initial token allocation (% of maximum total supply): 50.0% to the community, 27.7% to past investors of dYdX Trading Inc., 15.3% to founders, employees, advisors, and consultants of dYdX Trading Inc. or dYdX Foundation, and 7.0% for future employees and consultants of dYdX Trading Inc. or dYdX Foundation.
Note: To explore the current distribution of the ethDYDX tokens, visit the “Bubble Chart” section of the Moralis Money $DYDX token page. You can find the link to that page in the “Should I Buy $DYDX?” section below.
$DYDX Price Analysis
The $DYDX crypto token started trading in September 2021 at $3. At the time, the rest of the crypto market was on the second run of the cycle, and the token’s price took off as well. It peaked on September 30 at nearly $28, offering a solid 800%-plus gain.
After that high, the DYDX price stayed above $21 for 16 days; however, it broke that resistance on October 17 and entered a clear downtrend. With some minor relief rallies along the way, the asset’s value continued to decrease for about eight months. The price finally found its bottom on June 18, 2022, at the $1 mark.
Following that lowest point, the token’s value increased by about 170% over the next 41 days but was rejected at the $2.7 region. From there, the price revisited the $1 area and then repeated the move in this range, touching its bottom for the final time during the last days of 2022.
As 2023 started, most crypto markets followed Bitcoin’s awakening and DYDX was no exception. In just over a month, the token’s price increased by more than 250%, reaching just above its listing level of $3.
Then, $DYDX pulled back, finding support at $2.3; however, it eventually dipped back to $1.7 on March 11, 2023. From there, the price recovered and even reached $3.2 by April 18. But the token didn’t have enough momentum to go any higher. Instead, it slowly moved downwards, eventually marking the 2023 bottom at $1.3 on June 10.
2023 Consolidation and Potential Priming for 2024 Rally
After that low, the $DYDX price recovered slightly but could not break above the $2.3 level. The latter ended up serving as a major resistance until October 24, when the price finally broke above that level. Then, it turned $2.3 in support and climbed to $4.3 by mid-November, which marked the 2023 top.
Following that local high, the $DYDX price entered a correction, which might have reached its bottom on January 3, 2024, at $2.2. For now, the $2.3 region has managed to serve as support and the token may be ready to climb higher.
At the time of writing, the $DYDX crypto asset is trading at around $2.8.
TA & Money Line
Looking at the above two charts, you can see all the major levels of support and resistance for $DYDX. Moreover, on the daily timeframe, we also included the currently valid down-sloping channel (white lines).
These basic TA tools already tell us a thing or two about the most likely short-term DYDX’s direction. Of course, there are many other TA tools and indicators we could use; however, we prefer to use the ultimate trend indicator – Money Line.
And this powerful crypto trading tool shows us that the DYDX price is in a bullish trend on both weekly and daily timeframes:
Note: If you wish to get your hands on the Money Line indicator, make sure to opt in for the Moralis Money Pro or Starter plan. But you can also experience this powerful indicator firsthand with an awesome 7-day trial.
DYDX Price Prediction
Considering the above charts, it is likely that the $DYDX crypto token’s price will revisit the $2.6 level or even the $2.3-$2.4 region before continuing any higher. So, the key levels of support and resistance and Money Line’s cloud feature, are great at offering the most likely targets.
Also, you should keep in mind that all mid- or long-term price predictions are pure guesses. After all, the crypto markets are highly dynamic and no one really knows what will happen in a week, let alone in a month or a year. So, don’t take any such $DYDX price prediction seriously.
However, by focusing on short-term prognosis and combining TA and real-time on-chain metrics, you can come up with rather likely price targets. As such, make sure to use the “Alpha Metrics” and “Price Chart” sections on the Moralis Money token page dedicated to DYDX (you can find the link in the section below).
Should I Buy $DYDX?
First, think about your current financial situation and your risk aversion. If the two allow you to invest in mid-range altcoins, such as the DYDX crypto token, then consider the above-covered information. After all, the previous sections provide more than enough details to help you decide if you like the dYdX project and its coin.
If yes, then you ought to properly DYOR this potential opportunity. And this is where the Moralis Money ($DYDX) token page enters the scene. It provides you with all the resources and tools to make an informed decision, based on reliable data.
Particularly important are the token’s live price and its real-time on-chain metrics. So, make sure to spend some extra time with the “Alpha Metrics” and “Price Chart” sections. They are the key to determining if now’s a good time to buy $DYDX.
With that in mind, make sure to follow the above “$DYDX” link or use the interactive widget below.
Note: The above token page focuses on the DYDX token on the Ethereum chains (ethDYDX). This token’s on-chain metrics tend to differ from those for the DYDX on the dYdX chain. However, the prices of the two versions of the same asset match and so do their on-chain momentums.
Where to Buy dYdX
Just use the “Market” section on CoinGecko or CoinMarketCap page for that token. There, you’ll find a list of all CEXs and DEXs that offer the relevant training pair, including the trading volume. As such, you can easily pick a market that best suits your goals.
What is dYdX Crypto? DYDX Price Prediction & Where to Buy dYdX – Key Takeaways
- The dYdX crypto project was launched in 2021, and it is all about delivering a leading DEX that offers perpetual trading.
- Initially, the project launched its own cryptocurrency on the Ethereum chain (now known as ethDYDX) to serve as a governance token.
- In 2023, the project launched its own L1 blockchain network – the dYdX chain – and with it the new version of the DYDX token. The latter serves as an L1 coin powering the chain.
- Users can migrate the ethDYDX token to the dYdX chain.
- The price of $DYDX has recovered since its lows and looks ready for more upside appreciation in 2024.
- To decide if/when to buy $DYDX, make sure to use the Moralis Money page dedicated to that token.
- If you decide to buy $DYDX, find a DEX or CEX that has a sufficient trading volume for that crypto.
Whether you end up buying the DYDX crypto token or not, make sure not to forget about other cryptocurrencies. After all, there are thousands of tokens, with new ones coming out daily, that have the potential for those 10x, 50x, and even 100x gains.
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