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dYdX Token Could Sink Ahead of a Major Unlock Event

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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.

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IMX Price Double-Tops Ahead of Immutable X Token Unlocks

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IMX crypto price pulled back on Friday as investors waited for the upcoming token unlock that is scheduled for Saturday. The token rose to a high of $0.675, which was slightly above the intraday low of $0.6513. It remains a few points below this year’s high of $0.7500. 

Immutable X token unlock

Immutable X is a relatively small blockchain that plays an important role in the non-fungible token (NFT) industry. It is a layer-2 network that is focused on the non-fungible token (NFT) industry. A layer-2 network is a sidechain that handles transactions at a faster pace and at lower costs than Ethereum.

These networks, which include networks like Polygon, Arbitrum, and Optimism, handle transactions at a significantly lower cost. That’s because Ethereum is well-known for its substantially slow speeds and high transaction costs.

As a result, Immutable X has become a favorite blockchain for developers to launch their NFT collections. Data compiled by CryptoSlam shows that Immutable X handles tens of millions of NFT collections on a daily basis. In January, it has handled $11.3 million NFTs, lower than the $14 million that it processed in December. At its peak, it was handling over $53 million worth of NFTs per month.

Immutable X’s IMX token price retreated slightly ahead of the upcoming token unlock that will happen during the weekend. A token…

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Cardano Price Gains Momentum as DeFi and NFT Ecosystem Wakes Up

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Cardano price has been in a strong bullish trend in the past few weeks, making it one of the top-performing cryptocurrencies. ADA, its network token, has risen to a high of $0.39, which was the highest point since November 8. It has jumped by over 58% from the lowest level in 2022.

Cardano DeFi ecosystem rebound

Cardano price has been in a strong recovery as activity in its network do well. Data compiled by DeFi Llama shows that the total value locked (TVL) in Cardano’s DeFi ecosystem has been in a strong recovery as cryptocurrencies rebound. After falling below $60 million in 2022, the TVL has bounced back to about $102 million.

A closer look shows that most DeFi platforms are doing well. For example, MinSwap has seen its TVL jump by over 41% in the past 30 days. It has a market dominance of 31.4%. In the same period, Meld has seen its TVL soar to over$17.59 a million, making it the second-biggest DeFi platform in Cardano.

Other top players in the ecosystem are Indigo, WingRiders, MuesliSwap, and SundaeSwap have all seen their TVLs jump by double-digits, as shown in the chart below.

Cardano NFT…

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Aptos Price Continues to Defy Gravity as Activity Rises

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Aptos price has been one of the best-performing cryptocurrencies in 2023 as it roared to its highest point on record. APT jumped to a high of $20.45, the highest point on record. In all, it has jumped by more than 493% from the lowest level of all time. 

Why Aptos is soaring

Aptos is one of the fastest public blockchains in the world. It is an Ethereum rival that acts as a foundation for developers to build adaptive and high-quality applications across all sectors. The network, which is well-funded, has excellent speeds of more than 10,000 transactions per second.

Aptos has gained a lot of traction in the past few months. A good way to look at it is to consider the volume of assets that have been locked in the ecosystem. Data compiled by DeFi Llama shows that Aptos has a total value locked (TVL) of more than $75 million. 

The number of apps in its ecosystem has been on a steady growth in the past few months. According to DeFi Llama, the number of DeFi apps in its ecosystem have grown to 16. It has a total value locked (TVL) of more than $75.65 million, making it one of the biggest players in the industry. 

PancakeSwap is the biggest app in its ecosystem with a TVL of over $34 million. This…

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