dYdX Unveiling Blockchain Spurs Activity, DeFi Exchange Token Surges
The imminent unveiling of dYdX’s newest blockchain is fueling speculative activity. Investors identify with the speculation as they rush towards scooping the token powering the decentralized derivative exchange.
A review of the crypto market performance shows the native token DYDX powering the decentralized derivatives exchange dYdX gains stood out among the top 100 cryptos per CoinGecko.
The governance token realized 9% growth to exchange hands at $2.18. The gain is unsurprising given that dYdX has gained popularity among the decentralized derivatives exchange segment. By this time, the decentralized derivatives exchange realized a 24-hour transaction volume of $589 million, as per CoinGecko.
Unveiling of Cosmos-based Blockchain Triggers Investment Activity
While the token gains have subsided, the dYdX still attracts increased activity, with its daily trading volume realizing $476 million. The gains arise from the much-hyped capability of Cosmos-based blockchain dYdX plans to unveil.
The project is edging closer to the mainnet launch of the new blockchain by the end of September. The awareness of the upcoming blockchain is triggering activity among speculative investors. dYdX’s current version leverages the stalwart’s zero-knowledge rollups running on Ethereum.
The dYdX Foundation had in June 2022 indicated that it considered migrating the decentralized derivatives exchange to an independent blockchain by leveraging the Cosmos-based software developer kit (SDK).
A revisit of the journey indicates that the team unveiled the second testnet version of the Cosmos-based chain in mid-August, thereby staying on track with the delivery roadmap. The Foundation seconded the announcement by releasing the guidelines for the network’s validators as part of the preparation. The speculators echo the firm’s information, as revealed in the Nansen report that the token has been experiencing bullish accumulation since May. In particular, the Nansen report indicated that the platform witnessed 585 wallet additions estimated at $22.7 million.
Nansen Suggests Investment Round Looming as Distribution Wallets Transfer Coins
The Nansen report identified the accumulators within the platform, including Wintermute Trading, Sigil, CMS, and Cumberland. The analyst report suggests the project is set to have investor activity.
The report indicates that the activity reveals a likely investment round, as several wallets were recipients of coins directly transferred by the dYdX Foundation. Also, other currencies were now assigned by the project’s investor distribution wallets.
Nansen lead analyst Martin Lee indicated that though the Smart Money wallets previously holding the dYdX were flat, they have progressively increased the exposure since June 23. The analyst added that the holdings have realized an all-time holdings exceeding 47.8 million tokens.
A review of DYDX’s performance beyond the Nansen report shows that price increment arises from the broader uptrend observed in the risk assets since Wednesday.
Revisiting Risk Assets Volume and Price Movement
DYDX’s performance mirrors the price and volume movement witnessed across the risk assets category. It portrayed the broader crypto market trend where most of the tokens were in the green on Thursday, August 24 morning.
An assessment of the tech-heavy Nasdaq index had the biggest gain since May 2023. In particular, the index surged 2.61% to close at 15,307.3 points on Wednesday. The movement traces to the positive response by the investors to the slip in US government bond yields. The bond yields reached the highest level since the 2007-08 financial crisis. It coincided with the benchmark 10-year Treasury yield plunging from the 16-year high level of 4.35% to 4.21%.
The buying sentiment witnessed across the risk assets is fuelled by chipmaker Nvidia’s stronger-than-expected earnings in the second quarter.
Crypto Market Suffers Mild 1% Decline.
The market participants are cautious about what Federal Reserve chair Jerome Powell would state during the Jackson Hole symposium ending August 26. The investors anticipate that the interest rate will dominate the session.
Meanwhile, the total crypto market capitalization slipped by 1% to realize $1.09 trillion. The total derivatives volume accounts for $107 billion, though plunging 20.28% in the past 24 hours from 76 crypto derivative exchanges tracked by CoinGecko. Bitcoin and Ethereum are 1.4% and 1.1% down to exchange hands at $26047 and $1655.57, as indicated in CoinGecko data.
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