Data compiled by crypto data and analytics company Nansen reveals that experienced investors, classified as “Smart Money,” are accumulating the service token DYDX of the decentralized derivatives exchange dYdX. The data shows that these investors hold over $103 million worth of DYDX.
Smart Money Increases the Number of DYDX Tokens by 30%
Nansen reports that wallet addresses classified as “Smart Money,” based on the on-chain data it collected, have been steadily increasing their dYdX (DYDX) holdings. Nansen believes that these wallet addresses consist of prominent players such as DEX investors, liquidity providers, and venture capital funds.
According to the data, there are currently over 47 million DYDX tokens worth $103 million held in more than 80 wallet addresses classified as “Smart Money.” The wallet addresses have increased their DYDX holdings by 30% since the beginning of the year.
Speaking to The Block, Nansen analyst Martin Lee indicated that the number of Smart Money wallet addresses holding DYDX tokens has remained stable since June 23, while the number of tokens held by these wallet addresses has steadily increased, surpassing 47.8 million, reaching an all-time high. Additionally, there have been net token outflows from exchanges in the past 30 days.
On the other hand, the amount of tokens held by Smart Money accounts for a small portion of the total supply of 1 billion DYDX tokens. Furthermore, according to data provided by Token Unlocks, 6.5 million DYDX tokens are planned to be unlocked by the end of August.
dYdX’s Cosmos-based Blockchain Plan
Nansen’s finding comes before dYdX’s plan to launch a Cosmos-based Blockchain and version 4 on the testnet. The dYdX Foundation has also discussed the possibility of turning DYDX into a native asset on the planned Layer 1 on Cosmos through a governance vote, following its move from Ethereum.
Established in 2018, dYdX is currently the largest decentralized derivatives exchange with a trading volume of over $580 million in the past 24 hours, according to CoinMarketCap. The exchange’s service token, DYDX, is trading at $2.18 with a 9.55% increase during the day.
