The dYdX ecosystem has grown since it was founded in 2017. The exchange has now become one of the leading decentralized exchanges for continuous trading, trading products similar to futures contracts minus the expiration date.
according to Coingecko, the governance token of the exchange, DYDX, has catapulted 175% in two weeks with the largest gains made in the monthly time frame at almost 200%. This has been caused by positive on-chain developments and a complete change in sentiment in cryptocurrencies.
2022: A Year of Growth For DYDX
At annual report it shows that the ecosystem has grown too much. The report shows an additional 61,500 unique addresses receiving DYDX as a reward. Employee-wise, DEX has also grown from three full-time employees to 12 full-time and seven part-time contractors.
In the trading world, the dYdX V3 shows strength. The report shows 33,000 active merchants contributed more than $137.8 million in fees. This shows that many people are using the platform despite strong market headwinds.
Source: dYdX Foundation
The protocol is also set to enter full decentralization as the dYdx V4 trading platform is under development. Development will continue in so-called “Milestones” with the team completing the second one on January 17.
Chart: TradingView
Token Breaks May Level
As of the time of writing, the token is trading at $3.54, releasing the level of $3.3 registered in May 2022. A bullish break above the current price can prepare the bulls to make higher heights, regaining the ground lost as a result of the bear 2022. market.
However, this breakthrough may come at a later date as the token has dropped to the current support at $2.7 which could be a shaky support level for the token. If the bears claw through this support, DYDX may return to the $2.2 support which may provide some resistance to further bearish breaks.
Investors and traders should be careful when entering the current market price of DYDX because the current rejection in the current resistance can reduce it. But with the positive growth metrics shown in the annual report, DYDX bulls may be able to enjoy some short- to medium-term gains.
Crypto total market cap at $1 trillion on the daily chart | Chart: TradingView.com
But a breakthrough above the current resistance may come at a later date as the token enters a consolidation phase. DYDX at $2.7 will allow the bulls to enjoy sustained momentum that will lead to a breakout.
Now, strengthening current support and consolidating gains for sustained upward momentum is the order of the day.
Featured image from Chain Debrief