News

dYdX Token Could Sink Ahead of a Major Unlock Event

Published

1 year ago

January 23, 2023

Crispus

The dYdX crypto token price has been in a recovery mode in 2023 but there is a major risk ahead. The token soared to a high of $1.90, which was the highest level since December 15. It has jumped by over 78% from the lowest level in 2022.

dYdX has poor tokenomics

dYdX is an important company that operates in the blockchain industry. It is one of the biggest decentralized exchanges (DEX) in the world, handling billions of dollars in any given day. dYdX is built on Ethereum’s chain although the developers are working on their chain that will be hosted on the Cosmos ecosystem

dYdX token is used for the network’s governance. Holders of the token can participate in key issues of the network. It also acts as a discount utility, meaning that holders can receive discounts when using the ecosystem. However, the latter point is not all that important since dYdX has some of the lowest costs in the industry.

A key risk of investing in the dYdX token is that it has some of the worst tokenomics in the industry. 50% of the tokens went to the community while 25% of them went to provide trading rewards. The rest of the tokens went to retroactive mining rewards, liquidity provider rewards, community treasury, staking USDC, staking dYdX, investors, and founders and employees.

A key challenge for dYdX is that more tokens can be minted after 5 years. This means that this minting will happen in 2026, which will depreciate the value. With a 2% inflation rate, dYdX has one of the worst inflation figure in the industry.

Token unlocks

The next key catalyst that will push dYdX token is that there will be a massive unlock on February 3. This unlock will open 150 million or 15% of all tokens in circulation. This means that the overall, supply of these tokens will increase. In economics 101, an increase in supply leads to a lower price.

Therefore, since dYdX has a market cap of over $207 million, it means that dividing by the new supply will value the token at $0.70, which is much lower than the current $1.90. At the same time, daily trading rewards rises by about 3.8 million tokens every month. In total, about 5.6 million tokens. And some analysts expect that its liquidity will rise by 5x from where it is today. As such, this could see the token price continue slumping.

Crypto

BNB Price Surges Past $300, Faces Crucial $339 Hurdle: What’s Next?

Published

4 months ago

December 29, 2023

Crispus

BNB price has noted significant gains over the past few days, surging past the psychological resistance of $300. The native cryptocurrency of the Binance Exchange has surpassed Solana to regain its position as the fourth-largest cryptocurrency by market cap. The digital currency has been rallying lately with a 7-day profit of more than 15%. Additionally, BNB has clocked a phenomenal gain of 38% in the month to date.

Binance Coin Outlook

BNB price has been on a strong bull run for the past week, breaking out of its consolidation. Even so, the asset has experienced a correction in its uptrend over the past 24 hours but remains above the crucial level of $300. BNB’s total market cap has decreased by 4% over the past day to $48 billion, while the total volume of the asset traded over the same period dipped by about 15%.

Over the past year, Binance Coin has had to cope with Fear, Uncertainty, and Doubt (FUD) on the back of the regulatory troubles of its underlying exchange. Earlier, the BNB price touched a low of $223.50, a few days after its former CEO, Changpeng Zhao, pleaded guilty to money laundering charges. However, the cryptocurrency has managed to rebound 46% in value since then.

The recent price rally has been associated with various positive developments in the Binance ecosystem, including the Introduction of the Isolated Margin Auto-Transfer Mode. This feature enables…

Altcoins

Solana Price Surges Beyond $100, Dethroning Ripple and BNB To Secure Fourth Place

Published

4 months ago

December 27, 2023

Crispus

Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.

SOL Outlook

Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.

The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.

This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…

Altcoins

Solana Price Skyrockets to 20-Month Peak Amidst Memecoin Frenzy

Published

4 months ago

December 22, 2023

Crispus

Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5^th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.

Catalysts Behind SOL’s Rally

Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.

The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.

Cited figures provided by DeFi aggregator DeFiLlama…