dYdX to launch its own blockchain, what could this mean for the value of the token?

dYdX DYDX/USD is essentially a decentralized exchange (DEX) that is built on top of the Ethereum ETH/USD network and aims to deliver financial instruments to users.

These include perpetual, margin, and spot trading, alongside features such as lending and borrowing

The dYdX (DYDX) cryptocurrency is used for the layer-2 protocol and serves to facilitate the operation, which means that it allows traders, liquidity providers, and partners to essentially contribute to the protocol’s future.

The push towards a native blockchain as a catalyst for growth 

The derivatives-focused decentralized exchange (DEX) dYdX made an official announcement where they announced plans for the development of their own independent blockchain platform.

This is dubbed the dYdX chain and will be created through the usage of the Cosmos SDK, as well as the Tendermint Proof-of-Stake consensus protocol.

Keep in mind that these technologies are already a part of the Cosmos ecosystem, which is an interconnected system of application-specific blockchain networks.

This new chain will be released as a means of supporting the fourth iteration (V4) of dYdX. 

Validators will need to stake the token to secure the network under the PoS consensus mechanism.

The transaction fees within this new chain will also be payable through the usage of the DYDX cryptocurrency.

With this increased level of utility, the token might increase in value, and dYdX will be built and released by the end of 2022, according to the announcement.

Should you buy dYdX (DYDX)?

On June 23, 2022, dYdX (DYDX) had a value of $1.427.

To get a higher level of perspective as to what this value point indicates for the future of the cryptocurrency, we will be taking a look at May’s performance for DYDX and at its all-time high.

Starting with the all-time high, dYdX (DYDX) reached a value of $27.86 on September 30, 2021.

When we take a look at its performance throughout the previous month, however, dYdX (DYDX) had its highest point of value on May 8 at $3.952, while its lowest point was on May 12 at $1.5128.

Here we can see that the token decreased in value by $2.4392 or by 61%. 

However, at $1.427, DYDX can increase in value to $2 by the end of July 2022. With the launch of V4 and its own native blockchain, we can see the cryptocurrency reach $10 by the end of 2022 after the release.

The post dYdX to launch its own blockchain, what could this mean for the value of the token? appeared first on Invezz.

Latest Articles


No Comments

Post a Comment

Enter your email address to
subscribe to our newsletter

Top 10 Picks Of The Month

Market Movers