The native token of dYdX, a decentralized trading platform, has experienced a significant rally, climbing 29% despite a notable selloff by large holders.
At the time of writing, dYdX is trading at $1.28, with a market capitalization of approximately $820 million and a daily trading volume of $350 million. The token reached $1.31, its highest price since late July, which prompted increased outflows from large holders. According to data from IntoTheBlock, the platform recorded whale inflows of 6.42 million tokens and outflows of 6.82 million tokens on Sunday, October 20, resulting in a net outflow of 401,270 DYDX.
Typically, sharp increases in outflows among large holders can indicate panic selling. However, in this instance, the whale selloff was counterbalanced by heightened accumulation, leading to dYdX hitting a three-month high of $1.33 later that same day.
In contrast, inflows into the dYdX exchange have surged since October 18. Data from IntoTheBlock reveals that nearly 600,000 DYDX tokens entered centralized exchanges yesterday, suggesting that more investors may be looking to secure profits before potential price declines.
This trend comes as 91% of DYDX holders are currently experiencing losses, with only 9% in profit. Many investors might be motivated to minimize their losses, especially considering that the token is still down 72.5% from its all-time high of $4.53 reached in March.
On October 10, dYdX’s CEO, Antonio Juliano, returned after a six-month stint as chairman. He emphasized the importance of vision for the platform’s direction, noting, “In my time away from dYdX, execution went well, but I saw everyone slowly start to ask, ‘Wait… what are we really doing here again?’”
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