dYdX Token Soars 69%, But Clouds Gather Ahead of 2.16M Token Unlock

• dYdX exhibits remarkable 69% month-to-date growth, soaring from $1.858 to $3.10.
• However, 2.16 million dYdX, valued at $6.65 million, are poised to enter the market. 
• The next week’s unlocking has raised concerns about potential selling pressure.

Per data from CoinMarketCap, dYdX, the governance token of the decentralized crypto exchange DYDX, has been on a greenish streak for the past 30 days. In particular, CoinMarketCap statistics indicated that dYdX grew from $1.858 on October 13 to its current $3.11, marking a substantial 69% month-to-date performance.

However, a significant amount of dYdX tokens are set to be unleashed on the crypto market in the coming days. According to data from Token Unlock, a tracker of locked tokens, 2.16 million dYdX tokens will enter circulation in eight days. 

The market tracker noted that the to-be-released digital assets hold a market value of $6.69 million, representing 1.2% of dYdX’s circulating supply. Notably, Trading Rewards accounts for the lion’s share of the dYdX to be released on November 21. Specifically, 1.58 million tokens, valued at $4.87 million, are for Trading Rewards, while Liquidity Provider Rewards make up 575.34k, worth $1.77 million.

According to a report, the governance token is now under the spotlight as it faces the possibility of significant selling pressure across various exchanges amid the coming token unlocks. Also, citing data from market tracker Santiment, the report stated uncertainty looms over the long-term price trajectory of dYdX as large-scale holders shed and redistribute their holdings. Analysts typically interpret such a move as potential profit-taking, supporting the selling pressure argument.

Nonetheless, it is worth mentioning that following the most recent unlock schedule of over $6 million dYdX, the token grew from $1.97 to $2.4. The digital asset has sustained its trajectory without falling below $2 until its current $3.11.