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DYDX price prediction: What is DYDX?

By Peter Henn

Edited by Charlie Mellor

12:28, 15 November 2022

The DYDX name and logo on a dark background
DYDX appears to have done well at a time when crypto has done badly – Photo: Shutterstock

It is a token that has performed well at a bad time for crypto, but what is DYDX?

Let’s see what we can find out about DYDX, and also examine some of the DYDX price predictions that were being made as of 15 November 2022. 

DYDX explained

In order for a blockchain or blockchain-based platform to achieve anything like its full potential, it needs, in most if not all cases, to have its very own cryptocurrency. In order for that cryptocurrency to have any kind of value, it needs to be able to be bought, sold, or traded.

Most of the time, the easiest way to do this is through a cryptocurrency exchange. If a crypto is readily available on the market then it can let the market give it a value. 

While centralised exchanges (CEXs) are the most common way of trading crypto, they are not without their problems. There is usually a central authority which is responsible for deciding what cryptos can be bought, sold or traded on the exchange, as well as being in charge of setting prices and saying what can be swapped for what.

This can cause a problem, not least if an exchange suffers a liquidity crisis. This is what happened to the FTX crypto exchange in November 2022, prompting a market crash.

The other issue is that, since they are centralised, there are some crypto advocates who believe they stand against what they see as the fundamental point of cryptocurrency – namely, they are not decentralised and are subject to overall control from one authority. 

Therefore, there is an alternative, and this comes in the form of a decentralised exchange (DEX).

This is, put simply, an exchange where anyone can exchange anything at any time without being told what they can or can’t bring to the market. The dYdX DEX is just one of the many decentralised exchanges out there. 

What might, potentially, make dYdX a little different from the other DEXs that are giving crypto traders plenty of choice is that it gives its users options other than trading in cryptocurrency.

For instance, it provides the opportunity to, in effect, bet on whether the price of a crypto will move up or down. This is known as margin trading.

Margin traders borrow crypto assets using collateral which, when it drops below a certain level, is automatically traded to pay for the loan. This process is made possible through smart contracts – computer programs that automatically execute when certain conditions are met – based as in the case of dYdX on the Ethereum blockchain.

At the time of writing (15 November 2022), there were 38 different cryptos available to margin trade on the platform. 

Every blockchain-based network needs to have its own native cryptocurrency, and dYdX has the DYDX token. This is used to keep the system running and is used to pay out interest and rewards to investors. There are one billion DYDX tokens in total, which will be released in one form or another over the course of five years or so.

The dYdX platform was established by former Coinbase engineer Antonio Juliano and was launched in 2017, with the DYDX token first coming onto the open market in 2021.

One important thing to note at this point is that DYDX is based on the Ethereum (ETH) blockchain, which means that it is, technically speaking, a coin rather than a token. That said, you will hear references to the DYDX coin and to things like a DYDX coin price prediction, but these are wrong. 

DYDX price history

DYDX price history chartDYDX price history from launch to present – Credit: Capital.com

Let’s cast our eyes over the DYDX price history. While past performance should never be taken as an indicator of future results, knowing what DYDX has done in the past can help give us some very useful context when it comes to either interpreting a DYDX price prediction or else making one of our own. 

XRP/USD

0.60 Price
+3.190% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.13 Price
+1.000% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BTC/USD

66,743.50 Price
-0.450% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,512.09 Price
+0.070% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

The DYDX token first came onto the open market in August 2021 and, on 8 September, it was worth $12.80. Like many new cryptocurrencies, it was pretty volatile at the start, rising to $15.99 on 9 September before dropping to $11.36 on 13 September and then reaching $18.23 on 17 September before it hit an all-time high of $27.78 on 30 September. 

After that, though, things went downward and, despite a high of $18.36 on 8 November, it fell back down, dropping below $10 on 5 December and closing the year at $8.10.

So far, 2022 has been a weak year for both crypto and DYDX. The token managed to reach $9.14 on 5 January but then it went downhill, reaching a low of $4.45 on 24 February in the wake of Russia’s invasion of Ukraine.

Although there was a recovery to a little over $7 in early April, that was as good as things got. A series of market crashes saw it reach a low of $1.01 on 18 and 19 June.

There was some recovery after that, though, and it reached $2.58 on 9 August. There was then a slow decline, and the market turmoil following the collapse of the FTX exchange saw it reach a low of $1.21 on both 8 and 9 November.

After that, though, DYDX enjoyed a notable upswing at a tough time for crypto. It reached a high of $2.69 on 14 November and, on 16 November 2022, it was worth about $2.45.

At that time there were 65,569,295 DYDX out of a total supply of one billion. This gave the token a market cap of about $161.8m, making it the 136th largest crypto by that metric. 

DYDX price prediction round-up

Let’s now take a look at some of the DYDX price predictions that were being made as of 15 November 2022.

It is worth remembering that price forecasts, especially for something as potentially volatile as cryptocurrency, are very often wrong. Also, it is important to point out that long-term crypto price predictions are often made using an algorithm, which means that they can change from one moment to the next.

First, CoinCodex had a short-term DYDX token price prediction that suggested the crypto could have dropped to $2.34 by 20 November this year, before it could have plunged to a little more than $1.20 by 16 December. Despite that, the site’s technical analysis for the token was rated as neutral at the time of writing, with 19 indicators making bullish signals and eight sending out bearish ones. 

Next, CryptoPredictions.com made a DYDX crypto price prediction that argued the token could have closed the year at a fraction of a cent below $2.07, could have reached $2.85 in November 2023 and $2.96 12 months from then. The site’s DYDX price prediction for 2025 outlined it could have opened the year down to a little below $2.94, fell to a fraction under $2.57 in November and declined to $2.50 by the end of the year. By December 2026, the site said that DYDX could have recovered to $2.54.

Meanwhile, DigitalCoinPrice outlined a DYDX price forecast that said the token could have traded at $2.59 this year, $4.04 next year and $5.21 the year after that before it went on to $6.39 in 2025. By 2026, the site said DYDX could have traded at $6.84, could have reached $7.73 in 2027 and $9.04 in 2028, and could have closed the decade above the $10 barrier at $10.94. The site’s DYDX price prediction for 2030 suggestied it could have achieved $13.49 and gone on to $16.74 in 2031. 

Finally, WalletInvestor was very bearish in terms of its DYDX price prediction for 2023, and hinted the token could have been in for a tough 12 months. The site predicted the price of DYDX could have collapsed to just $0.184 in a year’s time. 

When considering a DYDX token price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. And never trade with money that you cannot afford to lose.

FAQs

Is DYDX a good investment?

It is difficult to tell. The token has performed well recently, but there is no way of telling whether this is going to be just a little spike or whether it can grow into something bigger. A lot will depend on how the market performs in the future. 

Remember, you should always carry out your own thorough research into any coin or token before making an investment to ensure it is the right step for you and your portfolio. Even high market cap cryptocurrencies can be affected by bear markets. So investors should be prepared to make losses as opposed to just expecting gains and should never purchase more of a token or coin than they can afford to lose.

Will DYDX go up or down?

It is hard to say. While DigitalCoinPrice was optimistic and had predicted a rise to $4.04 next year, WalletInvestor was more downbeat and suggested it could have only achieved $0.184 in a year’s time. Remember, price predictions very often end up being wrong, and prices can, and do, go down as well as up. 

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether DYDX is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.

Should I invest in DYDX?

Before you decide whether or not to invest in this token, you will need to carry out your own research, not only on DYDX but on other DEX-related coins and tokens. 

Ultimately, though, this is a question that you will have to answer for yourself. Before you do so, you will need to conduct your own research and never invest more money than you can afford to lose because prices can go down as well as up.

Markets in this article

DYDX/USD
DYDX/USD
1.5137 USD
0.0139 +0.970%
ETH/USD
Ethereum / USD
3512.09 USD
2.4 +0.070%

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