Decentralized exchange dYdX will soon unlock 10.63% of its circulating supply (worth over $95 million) into the market. The token unlock, scheduled for February 1st, may trigger a negative price reaction for the asset.
10.63% of Supply to Enter the Market
According to data from the analytics platform Token Unlocks, dYdX will release 33.33 million dYdX tokens into the crypto market. The tokens to be unlocked are allocated to three groups. Investors will receive 18.49 million tokens (worth over $53 million). The project’s team, advisors, and consultants will receive 10.18 million dYdX tokens ($29.22 million). Finally, future employees will be allocated 4.67 million tokens ($13.39 million).
The soon-to-be-released tokens trail the last scheduled unlock that occurred on January 23rd, where 1.58 million tokens were unlocked. Last month, dYdX released $500 million worth of tokens into the market, triggering a mild price drop.
Token Unlocks data shows that four additional unlock events of this size will occur. Over 60% of the dYdX tokens continue to remain locked.
dYdX Trades at $2.88
History has shown that most token unlocks are often accompanied by a price drop. The incoming token release may not be any different. Notwithstanding, the token is currently seeing a mild price increase due to another factor.
The token currently trades at $2.88, representing a 6.5% increase in the past 24 hours. This uptrend is a result of a recent feature added to the dYdX ecosystem.
Last year, the project deployed the beta phase of its layer-1 blockchain, dYdX Chain, on Cosmos. The blockchain included a staking feature. The feature entails that token holders deposit their assets into a pool of funds while securing the network and receiving a reward from gas fees.
Yesterday, the protocol introduced the dYdX Chain protocol v3.0 upgrade. The upgrade came with a liquid staking capability. Several liquid staking protocols are now flocking to the network.
Meanwhile, it remains uncertain whether the incoming token unlocks will hurt the token’s price.
