DYDX Analysis & Market Overview
1. Project Overview
dYdX (DYDX) is a decentralized exchange that provides users with key financial instruments, such as perpetuals, margin trading, spot trading, lending, and borrowing. It equips traders with off-chain order books and on-chain settlement, allowing them to short-sell tokens, increase exposure by leveraging long positions, and earn interest on deposited tokens for faster transactions.
dYdX (DYDX) could make transactions through 2 network chains: Etherscan (Ethereum), and Solscan (Solana).
2. Fundamental Analysis
The total supply of dYdX is 1,000,000,000 tokens, with a circulating supply of 183,765,523, accounting for 18.377% of circulation, which represents moderate liquidity. The 24-hour trading volume represents 27.7%, which means the trading volume was at a neutral level.
3. Token Information
4. Ownership Distribution Analysis of dYdX (DYDX)
4.1 Ethereum Chain
4.1.1 Rankings
Data from Etherscan and OKlink reveals that the top 30 addresses hold 87.27% of the dYdX tokens, worth $2,690,928,966.1274 at the price of $3.07761 per token explored on the 6th of December. Notable among them is Rank1, which ranks first and accounts for 44.08% of the dYdX tokens in the Ethereum Chain. In second place is dYdX. Rewards Treasury, which has about half the rank1 share at 19.74%.
Except for the first two, the rest of the token holders distribute the moderate dispersion, all are less than 5%, from the third place is Binance. Cold Wallet, which accounts for 4.59%.
The transactions within 24 hours are recorded as 174.76% changes buy-in, with a value of $9,829,890.98, making the dYdX token become more competitive status on the Ethereum market. This outcome should take credit by the rank 16 and rank 18 Bybit. Hot Wallet. Rank 16 bought 59.89% more dYdX tokens based on the previous owned, and rank 18 Bybit. Hot Wallet holds 150% more.
There is also a relatively high amount of account withdraw by rank 21 Binance. Deposit_1, it withdrew 23.53% of its amount, worth about $3,772,083.40.
4.1.2 Major Holders
#Rank 1
From the Rank1 account detail, it could be seen that in the assets component, it only owns dYdX one crypto, with a value of $1,284,452,074.83, which takes 44.08% of its ownership.
By analyzing this account's transaction history towards dYdX, it appeared that this account has a holding balance of 442.54M tokens, worth $1.29 billion and the activities status is extremely frequent, made a transaction few times in one day with a certain amount of tokens, which indicates that it is dominated by the token contract. Judging from the Method and transaction frequency, this address may be the address for the cross-chain system of dydx.
#Rank 2
From Rank2 (dYdX. Rewards Treasury) account detail, it could be seen that in the assets component, DYDX has its dominant position of all the crypto it owns, with a value of $577,051,971.3981.
Similarly, by analyzing this account's transaction history towards dYdX, it appeared that this account made the transfer in a few days. Its holding balance is 194.41 million tokens with a value of $576.33 million. It is also a smart contract.
#Rank 4
From the Rank 4 account detail, it could be seen that in the assets component, DYDX has its dominant position over all the crypto it owns, with a value of $78,991,673.325629.
Similarly, by analyzing this account's transaction history towards dYdX, its holding balance is 27.02 million, with a value of $78.96 million. It made few transactions every other month, not very often and it is also a smart contract.
4.2 Solana Chain
4.2.1 Rankings
Data from Solscan demonstrates that the top 30 addresses hold 74.33% of the whole ownership, with a total value of $54,403.6288. It is worth comparing that Solana owned capitalization is much less than Ethereum Chain, The capital volume of the former is 0.00202% of the latter.
The top 3 addresses account for 22.031%, 12.742%, and 8.395% respectively, constituting 43.168% of the dYdX tokens. The rest of the token holders distribute the moderate dispersion, all are less than 5%, from the 4th place, which accounts for 3.873%.
Transactions within 24 hours among the top 30 addresses are not available cause the OKlink has not upgraded the information related, however, the general information appears on the Solana page as follows.
By zooming in, one can see that in the past 24 hours, a small amount of transfer has been made multiple times on an average of 30 dYdX tokens, thus assuming that the smart contract is exercised.
4.2.2 Major Holders
#Rank1
By analyzing #rank 1 transaction history towards dYdX, it has transferred in and out, and the activities status is extremely frequent, made a transaction a few times in one day with a certain amount of tokens, which indicates that it is dominated by the token smart contract.
When further exploring the address owner, it happens to be a public account called [Raydium Authority V4], from which, it owns 18,930 tokens. The amount it owns DYDX token is 5218.4877, worth $16,060.4699.
#Rank2
By analyzing the #Rank 2 transaction history towards dYdX, it appeared to be over 1 or 2 years ago. Furthermore, Rank 2’s asset component dYdX token plays the most vital role, with the amount of 3,035.46637751, worth $9,713.49.
#Rank3
The Rank 3 address made a transaction only once which occurred 10 months ago, and bought 2,000 dYdX tokens. And this asset worth $6,400.00, occurred to be the most crucial token among its acquisition.
5. Position Distribution
DYDX began to fall this week and is close to the largest accumulation area in 2023, which will provide support to DYDX. Conversely, the main accumulation area above is far away.
6. Contract Data
Coinglass long/short ratio
Coinglass reports a real-time long/short ratio of 0.844 in 24 hours, and the trend has been consistent since 30 Nov 2023, indicating that the market perceives DYDX token on the bearish side.
Binance is currently the largest CEX for DYDX contract trading.
The long/short ratio leans towards the bullish side but is not quite distinct.
7. Recent News Highlights
7.1 Ethereum and the Innovator’s dillema
DYDX utilizes their specific application chain to solve the problem of very obvious limitations on what can be built on Ethereum. The problems with Ethereum are 1. The average transaction speed is 15–20 TPS and gas fees often soar above $200 2. Scaling users and having a higher frequency of use is not built to support that.
8. Summary
- Creating the original dydx chain through Cosmos SDK undoubtedly solved the problem of high fees, and enabled dydx to improve user experience more transparently and freely. In the process of gradual increase in market trading activities, dydx is ahead of other DEXs with this advantage.
- Judging from this distribution and the behavior of whales, after excluding foundations and reward treasury, dydx holders are relatively dispersed, and the possibility of a large amount of selling pressure in a short period is low. It can also be seen from the position distribution that dydx is located above the largest accumulation area in 2023, and it is more difficult to go up than to go down.
Disclaimer:
This analysis is provided for informational purposes only and should not be construed as financial advice or a recommendation to buy, sell, or hold any cryptocurrency or investment product. Cryptocurrency markets are highly volatile, and the value of tokens can fluctuate significantly in a short period.
Investors should conduct thorough research and consider their risk tolerance before making any investment decisions. The information presented in this report is based on available data and market trends, and subsequent developments may impact the analysis.
The analysis relies on data from various sources, including blockchain explorers, exchanges, and news outlets. While efforts have been made to ensure the accuracy of the information, there may be unforeseen risks or events not accounted for in this report.
It is crucial to note that past performance is not indicative of future results, and the cryptocurrency market is subject to regulatory changes, technological developments, and macroeconomic factors that can influence prices and market dynamics.
Readers are encouraged to consult with financial professionals and conduct independent research before making any investment decisions. The author and Sypool disclaim any liability for financial losses or damages arising from the use of this analysis or reliance on its content.
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