The popular cryptocurrency dYdX (DYDX) is preparing for a significant token unlock event, where $1.62 million worth of DYDX tokens will be released into the market on January 23 as part of the Liquidity Provider Rewards. This unlock represents 0.18% of the circulating supply.
Since the beginning of the year, DYDX has seen a 20% increase in value. According to Tokenunlock, a crypto data platform, 575,000 DYDX tokens valued at $1.62 million will be unlocked and become tradable on January 23 at 18:00 UTC.
Currently, dYdX’s native asset DYDX is trading at $2.82, with a marginal 24-hour increase of 0.03%. Over the past week, the altcoin’s price has decreased by 0.18%. Market observers and experts warn that the upcoming token unlock could impact the price.
Token unlock events in the altcoin market can pose risks for investors as they often lead to an increase in supply without a corresponding rise in demand, potentially causing a price drop. These events can also result in increased volatility and liquidity issues due to the influx of more tokens into the market.
There are also concerns about price manipulation attempts during or before token unlocks, which can mislead investors with deceptive price movements. Investors are advised to be cautious both before and after token unlock events due to their known impact on prices.