Is the DYDX coin a buy right now?
The DYDX token was launched by the dYdX foundation, a not-for-profit organization based in Switzerland. The DYDX token will give token holders voting rights, allowing them to participate and vote on governance proposals. dYdX’s ecosystem allows liquidity providers, traders, and partners to work together, making it more streamlined and effective.
dYdX has seen considerable growth thanks to its unique characteristics. dYdX’s staggering popularity has seen it process more transactions than America’s largest and most valuable cryptocurrency exchange, Coinbase, when dYdX processed $18.6 billion in transactions on September 27th and 28th. However, there has been a significant drop in the price of DYDX since October 2021. However, the protocol’s revenues have been significantly high, which begs the question, is DYDX a buy, hold or sell right now?
A Market-Beating Cryptocurrency, But For How Much Longer?
DYDX has seen a significant drop since October. Is it a good idea to buy DYDX?
dYdX was created by Antonio Juliano, who founded the dYdX foundation. The foundation looks to foster decentralized governance, empowering traders through open crypto products. The DYDX token was issued to allow the dYdX community to participate in the governance of the Layer 2 protocol, enabling liquidity providers, traders, and other partners to work together on the protocol. The foundation has created a robust ecosystem that focuses on driving growth and improving governance, rewards, and staking. The dYdX staking pool ensures safety and liquidity, with the reward program driving growth and adoption. dYdX is built onStarkware’s StarkEx scalability engine, using Layer 2 for the trading of cross-margined perpetuals.
The DYDX token was quite bullish in 2021, having shot up to its all-time high on 30th September, when the price hit $27.78. However, the price then assumed a downward trajectory, and by December, the price was down to $12.75, losing over half its value. The price dropped further by the end of December, falling to $8.61. With an experienced team at the helm, we could see a significant appreciation in the price of DYDX. This is why, at its current price, it could be a good idea to invest in DYDX.
The Road Ahead For dYdX
It is good to keep an eye on dYdX, with a competent team backing the project as it targets a host of problems for crypto users.
dYdX has several factors in its favour, with a competent team backing the project and plans for full decentralization.
Plans For Full Decentralization
dYdX has always stated that decentralization is at the core of its mission. In 2021, the exchange became the largest decentralized exchange by trading volume, challenging well-established centralized exchanges for market share. In line with this, dYdX outlined plans to switch to complete decentralization with the next version of the protocol, dYdX V4. V4 will be completely decentralized, fully open-source, and entirely controlled by the dYdX community.
Skyrocketing Activity
In March of 2021, there was hardly any trading activity on the dYdX platform. However, trading activity has gone through the roof since, with the current 24-hour trading volume of $99,469,129. The current market capitalization of DYDX stands at $305,538,497.36. On 27th and 28th September, the dYdX exchange surpassed Coinbase in transactions, processing $18.6 billion in transactions.
Check Out: dYdX (DYDX) Price Prediction
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Is DYDX Coin A Buy Right Now?
DYDX coin is a buy right now. 13 experts rate it a strong buy. With a significant drop since its all-time high back in September, the price appears undervalued.
CoinCodex predicts that DYDX could potentially rise by nearly 40%, pushing above $7 towards the end of 2022. However, CoinCodex’s technical indicators estimates that the current sentiment around dYdX is neutral. If you already own DYDX, it would be a good idea to hold.
A Cryptocurrency Under Close Watch - Now And Always
The price of DYDX has fallen considerably since and is currently hovering around $4.71. Recently, dYdX has seen a significant jump in revenue and has plans to switch to complete decentralization by the end of 2022, and these could be good reasons to keep an eye on the protocol.
eToro — Top Cryptocurrency Platform To Buy DYDX
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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