Research Summary
This report provides insights into the anticipation of the dYdX v4 launch, focusing on the DYDX token from an on-chain perspective. It highlights the significant growth in DYDX holdings, distribution among new and old wallets, involvement of well-known funds, and details about the upcoming v4 launch. The report emphasizes the importance of the launch in terms of scalability, decentralization, and MEV, with the launch expected at the end of September 2023.
Key Takeaways
Investor Insights: Anticipating the dYdX v4 Launch
- Significant Growth in DYDX Holdings: The 585 wallets identified as ‘DYDX Bulls’ more than doubled their holdings in the last 3 months, moving from 16.76m DYDX tokens to over 39.4m tokens. This reflects a strong investor interest in the DYDX token.
- Distribution Among New and Old Wallets: The distribution of the ‘DYDX Bulls’ has been split between new and old wallets, with over 42% of addresses created in 2023 and the remaining 58% being active for over a year or more. This shows a diverse range of investors.
- Top Accumulators and Well-Known Funds: Among the top accumulators, 25 wallets had greater than $1m inflows in the past three months. Some are linked to well-known names such as Wintermute Trading and Cumberland. Some wallets were also funded directly from the dYdX Foundation, indicating potential investor activity.
- dYdX’s Upcoming v4 Launch: dYdX is the most popular decentralized perpetual exchange today, with its v4 launch coming in the fall of 2023. The launch is expected to bring improvements in scalability, decentralization, and MEV. The report focuses on the role of the DYDX token from an on-chain perspective.
- Timeline for v4 Launch: V4 is expected to launch at the end of September in 2023, just shy of 2 months at the time of writing. The anticipation of the launch is likely to influence the market dynamics of the DYDX token.
Actionable Insights
- Monitor DYDX Holdings: Investors should keep an eye on the growth and distribution of DYDX holdings, as it indicates market trends and potential investment opportunities.
- Understand the Impact of v4 Launch: The upcoming v4 launch is a significant event that may influence the DYDX token’s value. Understanding its features and timeline can guide investment decisions.
- Identify Key Players: Recognizing the top accumulators and well-known funds involved in DYDX can provide insights into market behavior and potential strategic partnerships.
