The decentralized finance (DeFi) market continues to grow, with decentralized trading protocols like dYdX leading the way in innovation. dYdX is one of the largest decentralized exchanges (DEX) in the world in terms of trading volume and market share.
The hype surrounding dYdX is intensifying as the exchange finally offers a clear decentralized alternative to perpetual exchanges BitMex, FTX and Bitfinex.
So, what’s so special about DYDX coin? What are the benefits of holding DYDX coins? What is the development potential of DYDX coin? For these questions, we will reveal them one by one in the article!
What is DYDX?
When it comes to DYDX, it generally has two meanings: decentralized exchange DYDX and virtual currency DYDX.
In order to facilitate everyone's understanding of the relationship between the two, the former can be regarded as the business of a listed company, and the latter can be regarded as the stocks of a listed company, and the value of the stock benefits from the development of the business. The two are related, but there are also differences, so pay attention to the distinction.
The decentralized exchange DYDX is built on the Ethereum blockchain and focuses on providing perpetual contracts.
The virtual currency DYDX is an official native token issued by the platform, also known as the platform currency. The basic parameters are as follows.
What is the strength behind DYDX?
The DYDX project not only has a very professional team, but also receives a large amount of financial support.
(1) Project team
The founder of DYDX has extensive experience in software development and blockchain industry, as well as experience in founding decentralized projects. In addition, the entire project team has strong development capabilities and can support its development as a technology-based project.
(2) Project investors
As of May 23, 2023, the DYDX project has conducted a total of 4 rounds of financing, raising a total of US$87 million from more than 40 different investors.
The investors of DYDX are all well-known venture investors or institutions in the industry, such as Paradigm, A16Z, Coinbase CEO Brian Armstrong, etc.
How are DYDX tokens distributed?
According to the latest official information from DYDX, a total of 1 billion DYDX tokens have been created. Among them, the community accounts for 50%, early investors account for 27.7%, the team accounts for 15.3%, and future consultants & employees account for 7%.
After 5 years, additional DYDX will be issued every year at an inflation rate of no more than 2%, and the newly issued DYDX will be distributed to all the above people in different proportions.
Among them, the community received 54.8%, early investors accounted for 25.1%, the team accounted for 6.3%, and future consultants & employees accounted for 13.8%. It can be seen that the additional DYDX issuance is more allocated to the community and future consultants & employees.
What are the benefits of holding DYDX tokens?
DYDX is not only a platform currency, but also a governance token. This means that if you hold DYDX, you can enjoy a variety of benefits.
(1) Handling fee discount
If you trade on the DYDX platform, you need to pay a certain handling fee (left side of the picture). However, if you hold the platform currency DYDX, the handling fee can be discounted (right side of the picture). The more tokens you hold, the higher the discount and the less fees you will pay. Reach VIP level and enjoy up to 50% off.
(2) Transaction rewards
In order to attract more users to use the trading platform DYDX, the DYDX Foundation currently sets a monthly trading reward of nearly 1.6 million DYDX. The number of individual DYDX rewards depends on the proportion of one's own transaction fees to the total fees.
(3) Pledge rewards
Previously, the official set up two pools: Liquidity Pool and Safety Pool. Users can pledge USDC and DYDX into the pools respectively to receive rewards. At present, the passage of the two proposals DIP14 and DIP17 has suspended the rewards, so there are no rewards at present. Whether it will be opened in the future depends on a new round of voting governance.
(4) On-chain governance
Each DYDX token holder has the right to propose and vote, that is, he can propose plans for the development of DYDX, and vote affirmatively or negatively on proposals initiated by others to jointly decide the development of DYDX. Of course, you can also give or sell your proposal rights and voting rights to others.
What are the advantages and disadvantages of DYDX coin?
As a currency with strong applicability, the advantages and disadvantages of DYDX currency are closely related to the development team and future direction of DYDX decentralized exchange.
What are the development prospects of DYDX?
As of May 24, 2023, DYDX holds a 17% market share in the decentralized exchange (DEX) field, with a 24-hour trading volume of nearly US$500 million, ranking second overall. Although Uniswap ranks first, it only provides spot trading products and does not involve decentralized derivatives trading, making the DYDX platform the first choice in the market segment.
Top 8 DEXs by market share
In addition, as of May 24, 2023, DYDX has nearly 250,000 users and nearly 10,000 monthly active users.
When the general environment is not good, the DYDX platform will inevitably be affected. However, the DYDX team did not lie down, but took advantage of this opportunity to develop. Previously, the DYDX development team announced that after the platform launches the V4 upgrade, many new features and tools will be released, which is expected to be completed in mid-2023. In addition, they also announced that they will build on the Cosmos network and develop blockchain by the end of 2023. These will be groundbreaking changes in scale that will help attract more users and create more value for DYDX coins.
DYDX investment value
The investment value of DYDX currency is mainly reflected in the following aspects:
Decentralization: DYDX is a decentralized exchange with higher security, integrity and reliability than centralized exchanges.
Technological innovation: The technological innovation of DYDX coins can improve the efficiency and user experience of the platform through the use of tokens, and increase the usability of user transactions.
Potential market: In recent years, the demand for decentralized exchanges has continued to increase, and the resulting global market has reached billions of dollars. DYDX, as a decentralized exchange, has great development potential.
dYdX price trend analysis
good news
dYdX Chain launches mainnet beta version
dYdX Chain is a blockchain based on the DEX Cosmos SDK of the same name. It entered the mainnet testing phase on the evening of November 14th (Vietnam time) and opened trading for the first time nearly a month after launching the alpha version. Stress test the network.
According to the results announced by the dYdX Operations subDAO, 99% of voters agreed to deploy the mainnet beta version at this time.
Users can now trade on more than 33 derivatives markets through the dYdX platform, with leverage up to 20x. While the project is not offering any trading rewards during this period, it will reward participants by distributing transaction fees to validators and stakers.
According to subDAO’s description, the Alpha version is used to test the durability of the network, while the beta phase will be the trading test environment of VaidYdX Chain.
Alpha mainnet marks the first stage of the v4 upgrade, which will make the DEX dYdX independent from Ethereum, run on its own layer 1 blockchain, and convert dYdX into the token of dYdX Chain. The project has already undergone multiple testnet transitions this year. Recently, the dYdX development team announced that it has opened all the source code of the v4 upgrade for community evaluation.
Initially, dYdX was built on StarkEx, an Ethereum layer 2 scaling solution. As one of the largest decentralized derivatives trading platforms in the current cryptocurrency industry, dYdX’s cumulative trading volume since 2020 has exceeded $1 trillion.
dYdX cooperates with Circle to increase USDC circulation
At the same time as the mainnet beta version was launched, dYdX announced a partnership with the Circle and Noble teams, aiming to increase the liquidity of USDC flowing into dYdX Chain from other networks.
This functionality is enabled through Circle’s Cross-Chain Transfer Protocol (CCTP) bridge and will soon be available on Noble’s Cosmos blockchain mainnet.
Now, users can easily convert USDC between dYdX Chain and other blockchains. USDC on dYdX Chia, Noble and the upcoming CCTP will bring huge benefits to dYdX Chain v4.
CCTP operates under the mint burning mechanism, destroying USDC on the first chain through smart contracts, and then re-releasing it on the target chain. In short, when a user needs to transfer USDC from chain A to chain B, Circle will approve the transaction, destroy the original USDC on chain A, and then reissue stablecoins of equal value on chain B.
CCTP helps reduce risk and protect against attacks such as “minting short tokens” while increasing liquidity in the asset transfer process. The solution was deployed on Noble’s testnet on November 3 and is expected to be available on the network’s mainnet on November 28.
Following the above two pieces of good news, the price of dYdX has undergone extremely positive changes. In 24 hours, the DEX token has risen by as much as 30% and is trading near the $3.8 mark. The upward momentum shows no signs of stopping.
An An November 15, 2023 09:00 dYdX/USDT currency pair 1 hour chart
2023-2030 DYDX Coin Price Prediction
According to predictions, DYDX coin is expected to increase in the coming years. Analysts expect the DYDX coin to rise to $8.52 by the end of 2023, $9.25 in 2024, $10.30 in 2025, $10.85 in 2025, $11.65 in 2027, $14.05 in 2028, and $18.65 in 2029, with the estimated price reaching 2030 $23.50.
DYDX Price Prediction for 2023
According to some, dYdX is one of the most spectacularly rising cryptocurrencies this year (DYDX).
The median target among the 29 analysts offering DYDX 12-month price forecasts is $8.60, with the highest estimate being $9.50 and the lowest estimate being $7.45. The average estimated price is 78% higher than the current price.
DYDX Price Prediction for 2024
By 2024, we believe that dYdX must have established a firm foothold in the DeFi space, but it is unlikely that the token will suddenly start to rise wildly. Instead, we expect DYDX to grow slowly and steadily to $8.86. This may not be the cryptocurrency’s highest price this year, but it should be very close to the average price.
DYDX price prediction in 2025
dYdX will definitely become more popular in the DeFi space by 2025, which will definitely help increase its price. If things go as we expect, DYDX will never reach $10 this year. According to the latest DYDX 2025 price prediction, the coin may trade at $10.85 per coin.
DYDX price prediction in 2030
The future average price of dYdX in 2030 is $23. We do not expect prices to fall at this time. Instead, it should reach $23.33 within the first six months of this year. The price of the DYDX cryptocurrency is expected to increase further, reaching $24.61 by the end of 2030.
The current price of DYDX is far from the highest price, with a decline of more than 93%. It has basically been at a low level for a long time, and can even be said to be in an oversold state.
But after the V 4 version goes online, these problems will be solved, and the community will allocate more platform income to DYDX holders through voting.
Of course, a problem that DYDX tokens face that cannot be ignored is the relatively large unlocking selling pressure. However, after the V4 version is launched, token staking is likely to absorb the unlocking selling pressure.
In addition, the current trading volume of decentralized derivatives is still very low. With the advent of global regulatory policies, more transactions will be transferred to decentralized trading platforms, and decentralized derivatives have relatively large room for future development.
Based on the above predictions, in the future bull market, the market value of DYDX will most likely enter the TOP 30-50. It is not ruled out that the market value will enter the TOP 30. The price of the token DYDX is conservatively estimated to increase by 5-10 times, or even higher. .
Conclusion
The dYdX decentralized exchange offers an alternative to traditional cryptocurrency exchanges. dYdX focuses on community governance and decentralization, and has the ability to build a fairer and more transparent financial system. The upcoming V4 version of dYdX will move the exchange to the blockchain on the Cosmos network and is expected to be a major milestone for the platform, making it more decentralized.
While the cryptocurrency has performed well recently, we don’t know if and when it will cool down. A lot depends on whether the dYdX blockchain can continue to make progress.
Everyone, please use your little hands to make a fortune and pay attention~
Thank you all for your support, see you next time!
