DYDX Skyrockets 9%: dYdX’s 25% Fee Buyback Unleashed!

by

DYDX Price Jumps as dYdX Allocates 25% of Fees To Buyback Initiative

As one would expect, the news sent DYDX price soaring, like a debutante’s skirts in a whirlwind waltz. Up nearly 9% in a single bound, the poor token was positively giddy, no doubt thinking, “Ah, bliss! Someone, anyone, loves me!”

dYdX Allocates 25% of Fees To Buyback Initiative

On March 24th, dYdX, that most esteemed of decentralized derivatives exchanges, announced its intention to use 25% of its monthly protocol fees to purchase DYDX tokens. Ah, the benevolent paternalism of it all! As if to say, “Fear not, dear DYDX, we shall buy you back, and you shall be loved once more!”

But, of course, there’s method to this madness. A dYdX spokesperson, no doubt a paragon of virtue, declared that the tokens would be held for a long time, thereby preventing those odious entities from exerting control over them. One wonders, however, if this isn’t simply a clever ruse to justify the buyback program.

Earlier, all the revenues in the dYdX protocol were shared with active participants of the ecosystem, including stakers and liquidity providers. But now, 25% will be funneled towards the buyback programme, while another 25% will be used for the platform’s MegaVault program, 10% to the treasury, and another 40% will go to staking rewards. One can almost hear the sound of money being juggled, like a skilled acrobat on the high wire.

And, oh, the community is abuzz with excitement! Some are speculating that the buyback share could be increased to 100% of the net protocol revenue in the future, which would, of course, decrease the supply of DYDX tokens even further. Ah, the thrill of it all! Like a game of musical chairs, where the last one standing gets to keep the token.

DYDX Price Technical Analysis

Following the news of the buyback program, the DYDX price surged by over 10%, reaching approximately $0.731. The token’s value has increased by over 21% in the past two weeks, reflecting positive market sentiment. One supposes it’s a case of “when life gives you lemons, make lemonade,” or in this case, “when life gives you a buyback program, make a token go up in value!”

The chart for DYDX/USD shows the price in an ascending triangle pattern, indicating consolidation with higher lows and a horizontal resistance at the $0.72 level. Ah, the suspense is killing us! Will the price break through the resistance, or will it be stuck in this triangle forever? Only time will tell, dear reader.

The Chaikin Money Flow (CMF) indicator currently supports a bullish trend, with a value of 0.10, signalling a slight influx of capital into the asset. However, the Relative Strength Index (RSI) sits at 67, approaching overbought conditions, which could mean the current bullish momentum might soon face resistance. Ah, the plot thickens!

dYdX Platform’s Financials and Plans

This came as the dYdX platform further develops its features, yet the decision to discuss implementing protocol fees and allocating a certain amount for buybacks is a good move. Last year, in 2024, the trading platform earned $46 million in net revenue from the trading volume of more than $270 billion. Ah, the money, it just keeps rolling in!

The platform is still developing for further expansion with plans to improve services and adding the next steps that include the Spot Trading and Multi-Asset Margining backed by the new IBC Eureka. All these measures are expected to open up new opportunities for the traders, and help ensure long-term growth. One can almost hear the sound of progress being made, like a well-oiled machine.

Apart from the buyback program, some other changes have been made on dYdX tokenomics. DYDX token emission rate have been cut down and a further cut of 50% is expected to be made by June 2025. The migration from Ethereum to the dYdX Layer 1 is in progress, and most tokens are now transferred to the new chain. Concurrently, a proposal is being discussed to remove unbridged Ethereum-based tokens from circulation by June 2025. Ah, the drama, the intrigue, the tokenomics!

Read More

2025-03-24 18:14