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dYdX Price Prediction 2024: What Next for DYDX After $30 Million Foundation Grant?

Last Updated February 20, 2024 11:23 AM
Peter Henn
Last Updated February 20, 2024 11:23 AM

 x Key Takeaways

  • Excitement about a new mainnet has boosted the price of the DYDX token.
  • DYDX supports the dYdX decentralized exchange, which allows people to use crypto for margin trading.
  • Can DYDX continue its upward momentum?
  • One DYDX price prediction said it could reach $10.74 in 2025. 

The DYDX token blossomed in August 2023. The crypto, which supports the dYdX exchange, shot up over the course of the month. This was down, at least in part, to the system launching  a testnet in anticipation of the creation of its own blockchain. 

The platform’s co-founder, Antonio Juliano also made the headlines later on in the month when he suggested  crypto organizations avoid the United States due to a confused regulatory environment. 

In October, Juliano also attracted attention when he said that an upcoming transition to a Cosmos (ATOM) based chain would make it “fully decentralized”.

Fast forward to February 2024, and the dYdX community saw a grant of $30 million worth of DYDX from the platform’s treasury.

On February 20, 2024, DYDX was worth about $3.05.

dYdX did not immediately respond to a request for comment

But what is dYdX (DYDX)? How does dYdX work? Let’s see what we can find out, and also take a look at some of the dYdX Price Predictions that were being made as of February 20, 2024.

dYdX Price Prediction

Let’s examine some of the dYdX price predictions being made on February 20 2024. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.

2024 2025 2030
Prediction #1 $6.44 $6.44 $22.47
Prediction #2 $7.67 $10.74 $26.09
Prediction #3 $3.46 $4.78 $30.07

First, CoinCodex  had a short-term dYdX price prediction that said the token could drop to $2.87 by February 20 before recovering to $3.40 by March 21. The site’s technical analysis was neutral, with 21 indicators sending bullish signals and 10 making bearish ones. 

dYdX Price Prediction for 2024

DigitalCoinPrice  said DYDX would reach $6.44 this year, while Bitnation  said it would trade at $7.67. PricePrediction.net  thought DYDX would get to $3.46 in 2024.  

dYdX Price Prediction for 2025

Bitnation thought DYDX would hit $4.78 in 2025, while PricePrediction.net thought it would reach $5.17. DigitalCoinPrice said DYDX would be worth $22.47 next year. 

dYdX Price Prediction for 2030

Moving on to a more long-term dYdX price prediction, PricePrediction.net said it would get to $30.07 in 2030. DigitalCoinPrice thought the token would reach $22.47 that year. Bitnation’s DYDX price forecast had it trade at $26.09 at the start of the next decade.  

Google Gemini AI Price Prediction for dYdX (as of February 20)

Google’s Gemini AI platform gave the following price prediction for dYdX on February 20. Please remember that the exact price prediction of an asset or cryptocurrency in the future is nearly impossible to achieve. Additionally, artificial intelligent price predictions are predicated on past performances and are in no way entirely accurate.

Short Term (Next 3 months):

  • Possible Decrease: CoinCodex predicts a 10.16% decrease to $3.52 by March 19th, 2024, influenced by broader market trends and technical analysis.
  • Possible Increase: However, other sources like Changelly suggest a potential rise to $3.70 due to growing platform usage and positive technical indicators.

Medium Term (Next 6-12 months):

  • Mixed Outlook: Predictions vary. CoinCodex forecasts a rise to $5.22 by August 2024, then a decline. Changelly anticipates a range of $3.38 to $3.70 by April 2024.
  • Factors to Consider: DYDX adoption, DeFi market recovery, potential regulatory changes, and broader economic conditions.

Long Term (Next 3-5 years):

  • Optimistic View: Binance predicts a gradual increase to $4.27 by 2030, suggesting long-term growth potential based on the platform’s utility and future developments.
  • Uncertainties: Long-term forecasts are highly speculative and influenced by unpredictable factors like future innovations, competition, and broader market trends.

Reasons for Uncertainties:

  • Market Volatility: The cryptocurrency market is inherently volatile, making long-term predictions difficult.
  • Unforeseen Events: Unexpected events like regulatory changes, hacks, or economic downturns can significantly impact price.
  • Competition: DYDX faces competition from other DeFi platforms, and its success depends on its ability to adapt and innovate.

It added: “It’s crucial to remember that these are just potential scenarios, and the actual price of DYDX could deviate significantly. Always do your own research and consider your risk tolerance before making any investment decisions.”

Recent Updates from dYdX

On February 9 2024, the dYdX Foundation announced it had been allocated $30 million worth of DYDX from the community treasury.

It said : “This funding empowers the Foundation to execute its strategic roadmap for the next 3 years ”

DYDX Price History

Now, let’s examine the dYdX price history . While we should never take past performance as an indicator of future results, knowing what the token has achieved can provide us with some very useful context if we want to make or interpret a dYdX price prediction.

DYDX came onto the open market in 2021 and was worth about $12.80 in early September. Its price fluctuated and, on September 30, it reached an all-time high of $27.78. There was a decline after this and DYDX closed the year at $8.10. 

2022 was a challenging year for crypto and DYDX struggled. With crashes triggered by the collapses of the Terra (LUNA) blockchain and the FTX (FTT) exchange, it closed the year at $1.03. This meant it lost more than 85% of its value over 12 months.

dYdX in 2023 and 2024

dYdX Price History
The DYDX crypto outperformed the market in 2023 | Credit: CoinMarketCap

DYDX performed relatively well in 2023. A buoyant market saw it get to $3.65 on February 2 before it fell again. The United States Securities and Exchange Commission suing the Binance and Coinbase crypto exchanges hit it hard and it fell to $1.42 on June 10. This followed the news that Crypto.com (CRO) had suspended its American trading operations. After that, though, the token recovered and it closed the year at . The crypto closed the year at $2.94. This meant the crypto rose 185% over the course of 2023. By February 20, it was worth about $3.05. 

At that time, there were 295.6 million DYDX in circulation out of a total supply of 536 million. This gave the token a market cap of around $895.7 million, making it the 82nd-largest crypto by that metric. 

dYdX Price Analysis

DYDX Price Analysis
DYDX could drop before it rises again

The dYdX crypto started a multi-year bear cycle, which saw it drop more than 96%, in September 2021. It dropped to around $1 in December 2022, but recovered in 2023. 

Since late last year, it has been in an uptrend. It could, potentially, reach $6, but there could be another downturn before then.

Is dYdX a Good Investment?

It is hard to say. While the crypto has performed well lately, we don’t know if and when it will cool off. A lot will depend on whether progress with a dYdX blockchain can keep going forward.

As ever with crypto, you will need to make sure you do your research before deciding whether or not to invest in DYDX.

Will dYdX go up or down?

No one can tell right now. While the dYdX crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up. 

Should I invest in dYdX?

Before you decide whether or not to invest in dYdX, you will have to do your research, not only on DYDX but on other, related, coins and tokens such as Uniswap (UNI) or Osmosis (OSMO). Either way, you will also need to make sure that you never invest more money than you can afford to lose.

Who are the Founders of dYdX?

Computer programmer Antonio Juliano  and business consultant Zhuoxun Yin  founded dYdX in 2017. Princeton University graduate Juliano previously worked as an engineer for Coinbase and Uber. Yin, who has a degree from the University of Queensland, left dYdX in 2020. He is now COO and co-founder of the Magic Eden non-fungible token (NFT) marketplace. 

Who owns the most dYdX?

The crypto wallet with the most DYDX  is one associated with the platform.

Richest dYdX Wallet Addresses

The five wallets with the most DYDX are

  • 0x46b2deae6eff3011008ea27ea36b7c27255ddfa9. This wallet, which is listed as dYdX Foundation: wethDYDX token, holds 479,407,735 DYDX, or 47.94% of the supply
  • 0xb9431e19b29b952d9358025f680077c3fd37292f. This wallet, which is the dYdX rewards treasury, holds 187,404,242 DYDX, or 18.74% of the supply.
  • 0xf977814e90da44bfa03b6295a0616a897441acec. This wallet, linked to Binance (BNB), holds 66,105,765, or 6.61% of the total supply.
  • 0x08a90fe0741b7def03fb290cc7b273f1855767d8. This wallet, listed as dYdX: Community Treasury 2, holds 27,028,485, or 2.7% of the supply.
  • 0x6cc5f688a315f3dc28a7781717a9a798a59fda7b. This wallet, linked to the OKX exchange, holds 17,297,644, or 1.74% of the supply.

Fact Box

Supply and distribution Figures
Maximum supply 1,000,000,000
Circulating supply as of 20 February 2024 295,616,430 (29.56% of maximum supply)
Holder distribution Top 10 holders own 82.6% of maximum supply as of February 20 2024

From the Whitepaper

In its technical documentation or whitepaper , DyDx says that the DYDX crypto is designed to help the community run the platform. It says: “DYDX enables a robust ecosystem around governance, rewards, and staking — each designed to drive future growth and decentralization of dYdX, resulting in a better experience for users.”

dYdX (DYDX) Explained

One of the most important parts of the cryptocurrency ecosystem is the crypto exchange. Because cryptocurrencies have no underlying value, having a place where people can buy, sell, and trade them is crucial.

There are two types of crypto exchange. Centralized exchanges (CEXes) are more common, but they have their drawbacks. Decentralized exchanges (DEXes) aim to let users list whichever coins and tokens they want to trade. The dYdX  exchange is a DEX.

The DYDX token supports the dYdX exchange, which is based on the Ethereum (ETH) blockchain.

How dYdX Works

Something that makes dYdX a little different from other DEXes is that it allows people to do things other than trade crypto. For instance, dYdX features margin trading. This means that people can, in effect, borrow crypto assets from the platform. They can then bet on whether the price will go up or down using the borrowed crypto. This is made possible by smart contracts, computer programs that automatically execute once certain conditions are met. 

The dYdX exchange also allows people to borrow and lend cryptocurrency. At the time of writing (August 28, 2023), there were 38 currencies available to lend and borrow on dYdX.

The DYDX crypto token powers the dYdX exchange. DYDX holders can vote on changes to the network. The token also pays for rewards and transaction fees, and people can buy, sell, and trade it on exchanges. 

It is important to point out that, because DYDX is based on Ethereum, it is a token, not a coin. You might see references to such things as DYDX coin price predictions, but these are wrong. 

dYdX Attention Tracker

dYdX Google Search Volume
dYdX Google search volume | Credit: Google

Here is a chart for the dYdX Google search volume for the past 90 days. This represents how many times the term “dYdX” has been Googled over the previous 90 days.

FAQs 

How many DYDX are there?

On February 20, 2024, there were 295.6 million DYDX in circulation out of a total supply of 536 million.

Will DYDX reach $10?

It might do, but not for a little while. Bitnation thinks DYDX can reach double figures next year. PricePrediction.net says can break $10 in 2027, while DigitalCoinPrice thinks it can get there the previous year. 

Keep in mind that DYDX has not traded at over $10 since December 2021. 

What is DYDX used for?

The DYDX token pays for transactions on the dYdX decentralized exchange. Holders can vote on changes to the network. People can also buy, sell, and trade DYDX on exchanges. 

 

Further reading

Disclaimer 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability, and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto user should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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