Latest dYdX (ethDYDX) (ETHDYDX) News Update

Deep Dive

1. @dYdX: Buyback program stakes tokens bullish

"DYdX Buyback Program acquires DYDX from open market, stakes tokens to secure network, governance-approved, revenue-backed"
– CoinMarketCap Community (2025-07-17 15:35 UTC)
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What this means: This is bullish for ETHDYDX because staking reduces circulating supply (currently 41.66M tokens) while aligning incentives with network security. However, ETHDYDX’s $27M market cap remains 94% below DYDX’s $495M, per the same post.

2. @dYdX: Acquisition targets social scalability mixed

".@TheBlock covered [...] Pocket Protector will help power the next chapter of dYdX: social, scalable, and execution-focused"
– 289K followers · 19 July 2025 06:00 UTC
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What this means: This is neutral for ETHDYDX as infrastructure upgrades could boost platform usage (current 24h volume: $6.55M), but don’t directly address the token’s -59% 90d price decline.

3. @dYdX: ETHDYDX market cap divergence bearish

"ETHDYDX MarketCap: $27M [...] (Auto match could be wrong)"
– CoinMarketCap Community (2025-07-17 15:35 UTC)
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What this means: This is bearish for ETHDYDX, highlighting its 18.5x valuation gap versus DYDX despite shared branding. The token’s -85% annual return compounds concerns about liquidity (turnover 0.642).

Conclusion

The consensus on ETHDYDX is mixed, balancing protocol upgrades against stark token underperformance. While buybacks and infrastructure deals suggest long-term commitment, ETHDYDX’s $0.245 price (-59% 90d) and valuation disconnect warrant caution. Watch for narrowing spreads between DYDX/ETHDYDX market caps as a potential convergence signal.

Deep Dive

1. Acquires Pocket Protector Trading (19 July 2025)

Overview:
dYdX acquired algorithmic trading firm Pocket Protector to integrate its execution infrastructure, targeting improved scalability and social trading tools. The Block highlighted this as part of dYdX’s push to expand beyond derivatives into broader decentralized finance (DeFi) use cases.

What this means:
This is bullish for ETHDYDX as it signals technical capacity upgrades and potential user growth via social trading features. However, integration risks and execution timelines could temper short-term impacts. (dYdX)

2. Buyback Program Launched (17 July 2025)

Overview:
dYdX initiated a revenue-backed buyback program, purchasing ETHDYDX tokens from open markets and staking them to secure the network. The program is funded by protocol fees and approved via governance.

What this means:
This reduces circulating supply and aligns incentives via staking, potentially stabilizing prices. However, with ETHDYDX down 54% in 90 days, sustained buyback volume is critical to counter selling pressure. (CoinMarketCap)

3. Permissionless Market Launches (9 July 2025)

Overview:
dYdX rolled out permissionless market creation, allowing any project to list tokens instantly without fees or approvals. This facilitated listings like $ERA (22 July) and $GIGGLE (5 November).

What this means:
This neutral-to-bullish update could boost trading volume by diversifying offerings, but thinner liquidity for newer tokens might increase volatility risks. (dYdX)

Conclusion

dYdX is balancing ecosystem growth (acquisitions, listings) with tokenomics tightening (buybacks), though macro headwinds and altcoin weakness persist. Will these moves catalyze user adoption before competitors replicate their model?

Deep Dive

1. Yapper Leaderboard Season 4 (Q4 2025)

Overview: Season 4 of the Yapper Leaderboard, teased in a July 2025 tweet, aims to revamp community incentives with undisclosed updates. This follows Season 3’s focus on user activity tracking.
What this means: Bullish for ETHDYDX if engagement drives platform usage, but impact depends on reward structures aligning with token utility.

2. Buyback & Staking Program (Ongoing)

Overview: A governance-approved initiative (July 2025) uses protocol revenue to buy DYDX from open markets and stake it, reducing circulating supply while securing the network.
What this means: Neutral-to-bullish – buybacks could tighten supply, but staking rewards may dilute long-term value if emission rates aren’t adjusted.

3. Pocket Protector Integration (2025–2026)

Overview: The acquisition of Pocket Protector (July 2025) targets scalable social trading features, though technical integration timelines remain unclear.
What this means: Bullish if execution succeeds, as social tools could attract retail traders. Execution risk persists given the lack of detailed rollout plans.

4. CosmWasm Smart Contract Activation (Long-Term)

Overview: The dYdX Chain docs note plans to consider CosmWasm, enabling smart contracts for advanced DeFi use cases. No confirmed timeline exists.
What this means: Bullish long-term by expanding utility, but delayed activation could cede market share to competitors like Injective or dYdX v4’s native chain.

Conclusion

dYdX’s roadmap balances immediate tokenomics (buybacks) with ecosystem growth (social features, smart contracts). Success hinges on executing integrations while managing 41.7M stranded ethDYDX tokens’ reputational risks. Will CosmWasm activation accelerate developer adoption, or will delays erode its Cosmos-based edge?

Deep Dive

1. Bridge Discontinuation (June 2025)

Overview: Validators stopped processing bridge events after June 13, 2025, per governance vote DIP-29. This rendered 41.7M unbridged ethDYDX tokens non-functional.
The update removed bridge-related validation logic from dYdX Chain nodes, requiring validators to upgrade software to ignore bridge events. Gas fee structures were adjusted to reflect the simplified tokenomics.
What this means: This is neutral for ETHDYDX because it finalizes the token’s migration phase but leaves unbridged tokens stranded without utility. (Source)

2. Token Lock Mechanics (2023–2026)

Overview: Smart contracts enforce phased unlocks for team/investor tokens, with 10% of locked supply still vesting monthly until June 2026.
The code uses time-locked wallets and on-chain checks to prevent premature transfers. Liquid staking derivatives (e.g., stDYDX) inherit these restrictions.
What this means: This is bearish for ETHDYDX because ~70M tokens remain subject to sell pressure from gradual unlocks, though staking incentives might offset this. (Source)

3. Cosmos SDK v0.47.4 Integration (2023)

Overview: Backend upgrade improved validator coordination and block finality to ~2 seconds, using CometBFT consensus.
The update introduced IBC packet optimizations, reducing cross-chain swap fees by ~15%. It also laid groundwork for CosmWasm smart contract support (not yet active).
What this means: This is bullish long-term for ETHDYDX because faster finality and future smart contracts could attract more DeFi integrations. (Source)

Conclusion

dYdX’s codebase shifts focus from migration to sustaining its Cosmos-based chain, balancing unlocks with technical upgrades. With the bridge closed and vesting ongoing, how will developer activity respond to ETHDYDX’s reduced utility compared to DYDX?