Should we bury the DEX exchange dYdX and their token of the same name?
By nightfall,#DYDXsuffered a “double blow”:
1.#Bloombergwrote that the platform is negotiating the sale of part of its derivatives trading software. Potential buyers are venture funds#Wintermuteand #Selini. Representatives for dYdX, Wintermute and Selini did not respond to requests for comment.
2. Dydx website. exchange has been compromised. The warning did not apply to dYdX v4. Also, dydx. trade has not been hacked and remains safe to use. For now, the platform sites are fine.
The news came one after another and the chart made a “cut” in the range of 12%.
The secret of such a not too strong fall in the asset is that it is already at the bottom. In June-July, the price of DYDX fell by -55%. This month the price was updated to the December 2022 price (!) and came exactly to the June 2022 price - $1,005. The markdown from the March high is generally -78%. They crashed out of the April spot deal on April 12 (at a stop of -11.65%), having placed a stop on April 9 on time.
We tried to break down the growth chart from December 30 into waves. It turned out unsightly, but such a look has a right to exist. In it, the high of the fifth wave was delivered just in March. And since the beginning of March, the price has been in ABC correction. Which probably ended with a dump on July 5th. Now the asset is clearly undervalued, but it is important to wait for confirmation of the reversal. For example, fixing above the EMA of the 50 day TF (currently $1,522). The price has not been able to break through it since March, the very beginning of the correction.
We’ll return to asset speculation later. And we ended our story with the investment position on#DYDXon November 15, 2023, when we sold at $4.24 part of the coins purchased at $1.45 back in November 2022. At +191.33% we sold part of the coins for an amount equivalent to deposit. We will continue to keep the “free” ones.
DYdX Trading is backed by venture capital firms including Andreessen Horowitz and Paradigm, and the v3 platform generated $137 million in commissions in 2022 (VanEck calculated in a March 2023 report). The V3 platform is projected to generate approximately $18.67 million in revenue this year, according to tracker DeFiLlama. US residents are not allowed to trade on the exchange. We are sure that the trend of DEX platforms will show itself in the future.
