Bitcoin fell back to $34,692 at 2 pm yesterday afternoon and hit a high of $37,964 at 7 am today, November 16th. With the price going up and down, all the highly leveraged long and short positions in the market were liquidated.
Yesterday, funds began to flow in the market, and copycats made up for the increase, most notably Avax, Op, dydx, and even Fil. Dydx has doubled from $1.8 on October 7 to $4.35 at midnight today.
The driving force behind dydx's rise comes from the highlights of v4: (a) dydx v4 migrates to a layer 1 public chain based on Cosmos SDK. (b) The transaction process of off-chain matching and on-chain consensus. (c) There is no handling fee for placing/canceling orders, and the handling fee is only charged when the order is completed. (d) dydx has achieved fully decentralized governance.
Qingtian believes that the fundamental reason for the sudden increase in dydx is that it is in line with the large amount of unlocking by the project party, and the sudden increase before unlocking, so that the project party's dydx can be sold at a good price after unlocking. It is exactly the same as the sudden increase before the last Op large amount unlocking.
Dydx will unlock $600 million on December 1, nearly doubling the circulating supply. The supply will increase by 82%, accounting for 30% of the total unlocked amount. After that, there will be large unlocks every month, and the remaining 70% of the total unlocked tokens will not be fully unlocked until June 1, 2024. To put it bluntly, the project party is giving good news before exiting to get retail investors to take over.
DYDX is a decentralized financial protocol and the world's first decentralized digital currency derivatives trading platform, which aims to build more open, transparent and secure financial products through decentralized technology.
DYDX aims to remove traditional financial intermediaries and centralized trading platforms through Ethereum's blockchain technology and smart contracts, and provide users with safer, more transparent and efficient financial trading and investment tools.
One of the core functions of the dydx protocol is decentralized leveraged trading. Users can borrow and trade digital assets on the dydx platform, increasing the return on investment of transactions by using leverage multiples. dydx supports a variety of digital assets, including cryptocurrencies and tokenized assets. In the dydx platform, margin leverage trading and contract trading of derivatives are mainly supported, with a maximum leverage of 20 times.
Dydx adopts the order book model that has been used by centralized exchanges to this day. Users can not only place market orders and limit orders on the Dydx platform, but also include 5 stop loss modes. In addition, they can also set the effective deadline for the order.
In the view of dydx, the order book model is more in line with the needs of professional traders, and also caters to the needs of more cryptocurrency traders. The dydx project was established in July 2017. Its founder Antonio Juliano worked as an engineer at Coinbase Exchange in 2015-2016. At that time, the first generation of decentralized exchanges 0x and Kyber had already appeared, but dydx was mainly positioned in margin trading and derivatives trading.
DYDX was initially built on the Ethereum layer 1 public chain, but the explosion of decentralized finance on Ethereum increased transaction fees by 100–1000 times, and the congestion of the Ethereum network also seriously affected users’ trading experience.
After April 2021, dydx moved to the more scalable Ethereum second-layer public chain, Starkware platform. Whether in terms of scalability or transaction fees, Starkware's advantages are very obvious. Shortly after the move to the second-layer public chain, the transaction volume of the dydx platform soared by about 5 times to about US$30 million per day.
In June 2022, Dydx announced that its v4 version will be launched as an independent blockchain based on Cosmos SDK and Tendermint consensus. In 2023, Dydx continued to develop and promote its protocol, constantly introducing new features and improving existing features to meet the operational needs of users. At present, Dydx is still developing and committed to promoting the development of decentralized finance.
Dydx has raised a total of US$87 million in four rounds of financing, and its investment list includes well-known industry institutions such as Coinbase, A16Z, etc. The investment lineup is strong and the project development funds are sufficient.
According to its token distribution plan, investors own 27.73% of the tokens, or 277 million tokens, and their average dydx cost is US$0.31.
The total amount of dydx tokens is 1 billion, which will be distributed over five years starting from August 3, 2021. After five years, the maximum annual inflation rate will be 2.00% to support the development of the platform. The uses of dydx coins are mainly the following three points. 1. Participate in governance and voting. 2. Fee discount. 3. Stake the next period.
The highest price of dydx was after the token was issued and mining started. The highest price in the bull market of 2021 rose to 27.8 US dollars. Although dydx has developed quite well after the bear market came, the price of dydx has been sluggish for a long time. The maximum drop in the price of dydx once exceeded 90%, and it is basically at a low level for a long time.
DYDX is the most promising of the three governance tokens DYDX, UNI, and AAVE that Sunny is optimistic about. In the next round of bull market, can it break through its highest price of $27.8 in the 2021 bull market, become a value coin, and finally be recognized by the market.
DYDX is a project that Qingtian believes is very worthy of fixed investment in a bear market and fixed selling in a bull market. The fixed investment time should be set around June 1, 2024 when the project's tokens are fully unlocked.
I have finished writing, keep it up. I am the motivational guy in the B circle, an old investor who sincerely wishes you to get rich in the cryptocurrency circle.
