Decrypt’s Art, Fashion, and Entertainment Hub.
The governance token rose by 9% overnight; it last traded at $2.18. dYdX is a popular decentralized derivatives exchange, boasting more than $589 million in 24-hour volume.
Its gains come ahead of the project’s soon-to-be launched-based blockchain, as well as a broader market uptrend on Wednesday.
The platform is nearing the mainnet launch of its new blockchain, slated for the end of September.
The current version of dYdX is built using Stakware’s zero-knowledge rollups on .
In June last year, the dYdX Foundation announced the migration of the exchange to an independent blockchain built using Cosmos software developer kit (SDK).
The team launched its second testnet version of its new Cosmos-based chain on August 14, staying on track for its roadmap. The Foundation also released guidelines for validators on the network in preparation for its mainnet launch.
According to a Nansen report, the token has witnessed bullish accumulation over the past three months, with 585 wallets adding tokens worth $22.7 million.
Accumulators include heavyweights like Wintermute Trading, Cumberland, CMS, and Sigil.
The report also mentions "potential investor activity," suggesting that an investment round may be in the works, as some wallets received coins directly from the "dYdX Foundation and investor distribution wallets."
“While the number of Smart Money wallets holding the dYdX has been flat since June 23, these wallets have been steadily increasing their exposure. Holdings have hit an all-time high of over 47.8 million tokens,” Nansen analyst Martin Lee told Decrypt.
The positive increase in DYDX’s price was also supported by a broader uptrend in risk assets on Wednesday.
dYdX joins risk assets on the rise
The wider crypto market traded in the green on Thursday morning.
The tech-heavy Nasdaq index recorded its biggest gain since May 2023, closing 2.61% higher at 15,307.3 points on Wednesday.
Investors responded positively to a drop in U.S. government bond yields, which hit their highest level since 2007 earlier in the week.
The benchmark 10-year Treasury yield fell from a 16-year high of 4.35% to 4.21%.
The stronger-than-expected quarterly earnings from chipmaker Nvidia further boosted buying sentiment.
Markets are now holding their breath ahead of Jerome Powell’s, chair of the Federal Reserve, speech at the Jackson Hole symposium tomorrow. He’s expected to discuss the upcoming interest rate hike.