The impending introduction of dYdX’s latest blockchain platform seems to have spurred ongoing conjecture, as investors are actively acquiring its associated tokens.
Overnight, the governance token appreciated by 9%; its last price was $2.18. dYdX is a prominent decentralized derivatives exchange with a 24-hour volume of over $589 million.
Its gains come ahead of the upcoming launch of the project’s Cosmos-based blockchain and Wednesday’s broader market uptrend.
The mainnet launch of the platform’s new blockchain is scheduled for the end of September.
The team released the second testnet version of its new Cosmos-based chain on August 14, maintaining its schedule. The Foundation also published validator guidelines to prepare for the network’s mainnet launch.
The token has experienced optimistic accumulation over the past three months, with 585 wallets adding tokens worth $22.7 million, according to a report by Nansen.
The current iteration of dYdX is constructed using zero-knowledge rollups on Ethereum by Stakware.
In June 2017, the dYdX Foundation announced the exchange’s migration to a decentralized blockchain created with the Cosmos software developer kit (SDK).
Accumulators include Wintermute Trading, Cumberland, CMS, and Sigil.
As some wallets received coins directly from the “dYdX Foundation and investor distribution wallets,” the report also mentions “potential investor activity,” suggesting that an investment round may be in the works.
“While the number of Smart Money wallets holding 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,” disclosed Nansen analyst Martin Lee.
Wednesday’s broader uptrend in risk assets contributed to the positive price movement of the DYDX.
dYdX Joins Risk Assets in Rising Trend
The cryptocurrency market as a whole was in the green on Thursday morning. The tech-heavy Nasdaq index recorded its most significant gain since May 2023 on Wednesday, when it closed 2.61% higher at 15,307.3 points.
Investors responded favorably to a decline in U.S. government bond yields, which earlier in the week had reached their highest level since 2007.
The yield on the benchmark 10-year Treasury note fell from a 16-year high of 4.35 percent to 4.2 percent.
Chipmaker Nvidia’s quarterly earnings that exceeded expectations bolstered purchasing sentiment.
The markets are holding their breath in anticipation of Federal Reserve chair Jerome Powell’s speech at the Jackson Hole symposium tomorrow. He is anticipated to discuss the forthcoming interest rate increase.
According to CoinGecko data, Bitcoin (BTC) was up 1.6% from the previous day to last trade at $26,441, and Ethereum (ETH) was up 1.8% to last trade at $1,674.