Recently, 505 million USD worth of tokens have been unlocked, representing 81.63% of the circulating supply. Analysts predict that this long-awaited unlocking could exert significant selling pressure on the tokens.
Out of the 1 billion dYdX tokens, 50% were allocated to investors, founders, employees, and other insiders. The recent unlocking of 150 million tokens constitutes 30% of this allocation.
On-chain data reveals that the dYdX platform distributed tokens to investors such as a16z, Polychain Capital, and Defiance Capital since 2021. However, most investors chose to connect these tokens to the dYdX wETH smart contract.
As of December 1st, 438.39 million dYdX tokens, valued at 1.35 billion USD, remain locked in the contract. This one-way bridge means that the tokens remain locked within the contract.
The recent unlocking has intensified selling pressure on DYDX, although many investors still hold tokens connected to the wETH dYdX smart contract.
Blockchain analyst Lookonchain reports that three whale wallets received tokens from dYdX and transferred 6.81 million DYDX tokens, valued at 21.46 million USD, to Binance. Wallets 0xD21B, 0x63C6, and 0xa70d still hold a total of over 14 million DYDX tokens, indicating the potential for further selling.
As a result, the token has declined by nearly 5% in the past day and is priced at 3.12 USD at the time of writing.
Meanwhile, other cryptocurrency projects, including 1inch, Sui, Optimism, Aptos, and Apecoin, have plans to unlock significant tokens this month. Data from Token Unlock has compiled the total accumulated value of these planned unlocks to be 295 million USD.
Over the next seven days, tokens worth 64.56 million USD are expected to be unlocked. The primary unlocks include 1INCH, releasing 33.96 million USD, accounting for 9.5% of its total supply. SUI is also expected to unlock 21.24 million USD (3.4% of its supply).
Additional unlock events scheduled in this period include digital assets like HFT from Hashflow, GAL from Galxe, LQTY from Liquity, EUL from Euler Finance, and TORN from Tornado Cash.