Token

Euler

Tornado

Defiance

Decentralized finance (DeFi) protocol <a href="https://cryptoslate.com/coins/dydx/" rel="noopener noreferrer nofollow">dYdX</a> unlocked 150 million tokens earlier today, leading to a nearly 5% drop in its price during the past day despite the broader positive trend in the crypto market.
<h2 id="500m-tokens-unlocked">$500M tokens unlocked</h2>
The unlocked tokens, valued at $505 million, represent 81.63% of the circulating supply. Analysts anticipated the long-awaited unlocking would exert significant selling pressure on the token.
Of the 1 billion dYdX tokens, 50% is allocated to investors, founders, employees, and other insiders. The recent unlocking of 150 million tokens constitutes 30% of the allocation for these insiders.
<a href="https://etherscan.io/token/0x92d6c1e31e14520e676a687f0a93788b716beff5?a=0xb4fbf1cd41bb174abeff6001b85490b58b117b22" rel="noopener noreferrer nofollow">On-chain data</a> reveals that the dYdX foundation has been distributing tokens to investors like a16z, Polychain Capital, and Defiance Capital since 2021. However, most investors have chosen to bridge these tokens to the wETH dYdX smart contract.
As of Dec. 1, 438.39 million dYdX tokens, valued at $1.35 billion, are <a href="https://etherscan.io/token/0x92d6c1e31e14520e676a687f0a93788b716beff5?a=0x46b2deae6eff3011008ea27ea36b7c27255ddfa9" rel="noopener noreferrer nofollow">locked</a> in the contract. This bridge operates only one way, so the tokens remain locked in the contract.
<h2 id="selling-pressure-rises-for-dydx">Selling pressure rises for dYdX</h2>
The recent unlocking has intensified selling pressure on DYDX despite many investors still keeping their tokens bridged in the wETH dYdX smart contract.
Blockchain analyst Lookonchain <a href="https://x.com/lookonchain/status/1730408271985655871?s=20" rel="noopener noreferrer nofollow">reported</a> that three whale wallets that received tokens from the dYdX foundation have moved 6.81 million DYDX tokens worth $21.46 million to Binance.
Wallets 0xD21B, 0x63C6, and 0xa70d still collectively hold over 14 million DYDX tokens, indicating the potential for further sales.
Consequently, the token has experienced a nearly 5% decline within the past day and is priced at $3.12 as of press time, according to CryptoSlate’s data.
<h2 id="other-anticipated-token-unlocks">Other anticipated token unlocks</h2>
Meanwhile, other crypto projects, including <a href="https://cryptoslate.com/coins/1inch/" rel="noopener noreferrer nofollow">1inch</a>, <a href="https://cryptoslate.com/coins/sui/" rel="noopener noreferrer nofollow">Sui</a>, <a href="https://cryptoslate.com/coins/optimism/" rel="noopener noreferrer nofollow">Optimism</a>, <a href="https://cryptoslate.com/coins/aptos/" rel="noopener noreferrer nofollow">Aptos</a>, and <a href="https://cryptoslate.com/coins/apecoin-ape/" rel="noopener noreferrer nofollow">Apecoin</a>, have substantial token unlocks scheduled for this month. Data from Token Unlocks pegged the cumulative value of this planned unlock to $295 million.
Within the next seven days, tokens worth $64.56 million are expected to be unlocked. The primary unlock is 1INCH, releasing $33.96 million, which accounts for 9.5% of its supply. SUI is also slated for an unlock of $21.24 million (3.4% of its supply).
Additional unlocks scheduled for this period include digital assets like Hashflow’s HFT, Galxe’s GAL, Liquity’s LQTY, Euler Finance’s EUL, and Tornado Cash’s TORN.
The post <a href="https://cryptoslate.com/dydx-price-dips-as-505-million-worth-of-tokens-hit-the-market/" rel="noopener noreferrer nofollow">dYdX price dips as $505 million worth of tokens hit the market</a> appeared first on <a href="https://cryptoslate.com" rel="noopener noreferrer nofollow">CryptoSlate</a>.

dYdX price dips as $505 million worth of tokens hit the market

Table of Contents

CryptoSlate

Other articles published on Dec 1, 2023

Investment Management Firm ARK Invest Continues to Sell Shares of the Rising Crypto Exchange!

Emirex Token (EMRX) Price Prediction 2025, 2030, 2040 and 2050

Shocking Hidden Dogecoin Detail in Elon Musk’s New Product Cybertruck’s Website Code

BBC mocked for 'unfair' Bitcoin mining article

Bitcoin Eyes $39,000 Threshold as Bulls Exert Strong Pressure

Paxos scores licensing approval in Abu Dhabi

Join our free newsletter for daily crypto updates!