Faced with these challenges, dYdX fell into the “spider's web”.

Last September, dYdX, which gained popularity due to its reliance on the mining industry, recently plunged into recession due to the impact of the mining industry.

On December 15, the DYDX token exchange rate traded at $ 8.3, down 70.2% from its September 30 high of $ 27.88, above the size rules DeFi as UNI and BAL at the same time. time. To jump.

A further increase in token sales due to the commercial mining mechanism is one of the reasons for DYDX's decline. According to legal information, at any time (28 days) the contract distributes 3835616 DYDX to business customers for 5 years.

The cost of managing tokens continued to decline, the impact on the market and mining operations of dYdX was sharply reduced, and the platform's trading data declined overall. According to the data, the dYdX market volume for December 14 was $ 1.389 billion, down 85.3% from its peak of $ 9.5 billion, and on the same day the interest rate open on dYdX was $ 910 million, a higher peak in the United States. $ 1.52 billion, down 40%. In addition, the total closing costs of dYdX and the growth of new users have also been very slow.

DYdX, which has fallen into the "spider's web", faces competition.Some users have reported in the media that the group hopes to increase its market share by using additional DYDX events. There are also tips for dYdX users to follow the lead of PancakeSwap and other DEXs to increase the market share of NFTs and increase the popularity of contracts by issuing new funds. .

How did dYdX crack the game on the market?

DYDX data files are completely lost

The decentralized derivatives trading platform dYdX has recently seen a decline in its rapid growth, and the management token, DYDX, has declined, along with data such as open positions and the number of new users downgraded to different levels.

On December 15, DYDX posted a price of US $ 8.3, down 70.2% from a high of US $ 27.88 on September 30. Although the overall market is reporting recent declines, the decline in DYDX was achieved by most DeFi protocol tokens, while UNI and BAL fell 35% and 26.3% respectively at the same time.

Obviously, the drop in DYDX is not only associated with weak trade, but also has some issues.

Thinking back to the important moments of dYdX,In this agreement, the DYDX management token was developed in the form of a “retroactive airdrop exchange mining”.On August 3, dYdX announced the release of DYDX to more than 36,000 early chat users. The law states that users must complete their product within 28 days to receive all airdrops.

At the same time, the dYdX mining industry also started.. According to official data, 25% or 250 million DYDX of the initial DYDX offering for the next five years will be distributed to affected users of the dYdX Layer 2 protocol, with 3,835,616 DYDX distributed at any time (28 days). In order to boost, every trader uses the dYdX Layer 2 protocol to improve trading performance and profitability.

After the mining industry started, dYdX attracted a lot of big cars in a short period of time. According to the data, the dYdX contract volume for August 3 was $ 218 million, the highest at the time. In the week of August 1-7, the number of active dYdX users surpassed 7,000, an increase of almost 7 times over the previous one.

In the first period from August 3 to 31, DYDX is still in the “blind mining” phase. On September 8, DYDX was launched for the first time. First, the tokens have a value on the second trade. , about $ 12.5. And the cost of getting DYDX for users participating in the first phase of the mining market is around $ 3.The big refereeing sites have attracted more users to the dYdX Nuggets.

Many users and funds have invested in making dYdX a great application in mining steps 2 and 3. In order to get more DYDX, users have to trade like crazy, ignoring value, pushing dYdX protocol to the highest level. level. .

On September 28, dYdX 24H's market share reached $ 9.5 billion, beating Uniswap to become the number one DEX of all DEXs. Moreover, that profit was higher than the profits of three central trading bases - Coinbase, FTX and Huobi World - on the same day.

The dazzling data performance of the market drew listeners to dYdX, and as of September 30, the price of DYDX had jumped to $ 27.88.

However, as the mining industry continues, dYdX will release over 3.8 million managed tokens every 28 days. As the market slowly rose and the stock market weakened, DYDX also entered a low, and over the next two months DYDX continued to fall, hitting its current high of $ 8.3.

The most recent performance being “spider down” is called DYDX. If the value of the token continues to fall, consumer and market satisfaction will only decline, causing the performance of dYdX data to decline.

dYdX opens interest and low volume packaging business

According to official data, the market volume on dYdX on December 14 was $ 1.389 billion, down 85.3% from a high of $ 9.5 billion, and on the same day the rate of open interest on dYdX was $ 910 million, 1.52 billion from peak. period. . $ 10 million, down 40%. Falling market data caused DYDX to drop in the secondary market.

Users expect dYdX to strengthen their control tokens.

In the dYdX community, most of the users are not happy with the recent performance and many DYDX owners have sold it.

The good news is that the total lock-in value (TVL) of dYdX did not experience a significant drop during the volume crash and token declines. However, in view of the growth, the development of dYdX TVL has slowed down.

The TVL development of dYdX has recently been slow.

In September and October, dYdX's TVL increased 114.28%, from $ 280 million to $ 600 million. Last month, TVL grew only 6.8%, from $ 910 million to $ 972 million.

The number of new YdX users is expected to decrease due to the slow growth of TVL. According to the data, from August 1-7, dYdX added 8,373 new users, and from September to October, dYdX added 1,500 new users on average every week. Since November, the average number of new users per week on dYdX has fallen to around 300.

TVL's growth has slowed, the number of new users continues to decline, and dYdX's growth has slowed.Bad data has revealed some of the side effects of commercial mining dYdX.

Former mining industry users at dYdX have stated that Honeycomb Finance does not have mining industry arbitrage facilities by default, and “mining” can be profitable. “It's not bad, but dYdX lost a lot of call demand. Finally, the dYdX industry needs more oil price for deposits and withdrawals compared to the exchange rate, costing more than 100 $ to obtain mining benefits. oil costs. "

How is dYdX coming out of the current crisis?

In the media, some users were hoping that dYdX could add additional demand status to the symbol, claiming that "increased demand will increase transaction costs and help restore status."

Currently, the use of DYDX status is also restricted, and in addition to participating in election administration, holding a similar amount of DYDX may benefit from a similar discount rate. However, in the opinion of many users, if the mining mechanism has been around for a long time, the reduced price is relatively dry. , the number of mining operations will continue to decline, ”he said.

There is also a user guide in case.dYdX emulates PancakeSwap and expands the industry such as NFTs and announces new tools, adding more usability events to DYDX. A while ago there was a rumor that communities could get an NFT airdrop from dYdX if they had money on DYDX, but so far dYdX has not yet implemented NFT. , GameFi, etc.

For dYdX, losing data activity and slowing user growth are the issues it is currently facing. Ultimately, dYdX is expected to respond to emerging conditions in the mining industry.