The Decentralized Finance (DeFi), protocol dYdX, unlocked 150,000,000 tokens today. This led to a drop of nearly 5% in its price over the last day despite a positive trend on the crypto market.
$500M tokens unlocked
Unlocked tokens worth $505 million represent 81.63% the supply. Analysts predicted that the long-awaited unlocking would put significant pressure on the token.
The 1 billion dYdX Tokens are allocated 50% to investors, employees, founders and other insiders. This allocation is made up of 30% of 150,000,000 tokens that were recently unlocked.
Data shows that since 2021, the dYdX Foundation has distributed tokens to investors such as a16z and Polychain Capital. Most investors, however, have decided to bridge their tokens with the wETH DYdX smart contracts.
The contract has been locked since Dec. 1. This means that 438.39 millions dYdX Tokens worth $1.35 billion are locked . The bridge only works one way. Therefore, the tokens are locked into the contract.
Selling pressure rises for dYdX
Despite many investors keeping their tokens in the wETH dYdX contract, recent unlockings have intensified the selling pressure for DYDX.
Lookonchain , a blockchain analyst, reported that Binance has received 6.81 million DYDX tokens valued at $21.46 millions from three whale wallets who received tokens of the dYdX Foundation.
Wallets 0xD21B, 0x63C6, and 0xa70d collectively still hold more than 14 million DYDX tokens, indicating that there is potential for future sales.
According to CryptoSlate data, the token’s price has dropped by nearly 5% in the last day. As of the time of publication, it was priced at $3.12.
Unlocking other tokens is also anticipated
Other crypto projects such as 1inch, Sui Optimism Aptos and Apecoin have significant token unlocks planned for this month. Token Unlocks data put the value of this planned token unlock at $295 million.
In the next seven-day period, it is expected that tokens worth $64,56 million will be released. The first unlock will be 1INCH. This release of $33.96 millions, or 9.5%, is the primary unlock. SUI will also see a unlock of $21.24 millions (3.4%).
Other digital assets scheduled to be unlocked during this period include Hashflow’s HFT and Galxe’s GAL. Liquity’s LQTY is also included, as well as Euler Finance’s EUL and Tornado Cash’s TORN.
