dYdX, the largest crypto derivatives trading exchange, recorded $466.3 billion in cumulative transaction volume and generated $137.8 million in fee revenue in 2022, according to a dYdX Foundation report.
The platform's cumulative volume rose 140% year-over-year (YoY) compared to $322 billion in 2021, per official data.
Trading volumes on dYdX trended upward even though the total value of tokens locked on the platform fell in 2022 — dropping to about $400 million after peaking at 1.1 billion in October 2021. This suggests that dYdX's users remained active and continued to use the platform.
Despite strong fundamentals, the inflation of dYdX native tokens had emerged as a source of concern among speculators. This stemmed from the team's plan to release 150 million tokens, valued at more than $280 million, to investors and employees in February 2023.
This would have doubled the current supply, with more tokens to be unlocked in the following months. Last week, the dYdX team decided to delay its token unlocks until December. The token price recently rose to $2.70 in January from $1.10 at the start of the month.
dYdX currently exists on Ethereum Layer 2 network StarkEx, but soon plans to transition to its own blockchain within the Cosmos ecosystem.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.