- The dYdX token joined the other cryptocurrencies like Bitcoin in a major rally.
- Almost all cryptocurrencies have rebounded this week as BTC hit $35k.
- dyDx launched its most anticipated dYdX Chain on Tuesday.
The dYdX token price went parabolic this week as cryptocurrencies rebounded and as the developers launched dYdX Chain. The coin soared to a high of $2.487 on Tuesday, an important level since it was the highest swing in July.
dYdX Chain faces hurdles
The biggest catalyst for the dYdX price surge was the broader cryptocurrency rally. Bitcoin, the biggest cryptocurrency in the world, soared to $35,000 for the first time in months. The total value of all cryptocurrencies jumped to over $1.126 trillion.
dYdX and other exchange-related tokens like OKX’s OKB, Huobi’s HT, and Uniswap’s UNI jumped because the ongoing rally could lead to higher volumes as well. This also explains why Coinbase shares jumped by more than 10% on Tuesday.
The other big driver for the dYdX token price was the official launch of the much-waited dYdX Chain. This is a major move for the company since the chain gives it full decentralization over time.
Also, it gives it total control of its trading platform. Traders can now execute trades at a faster pace and at significantly lower speeds.
dYdX will also see its own ecosystem of developers who will be attracted to its popularity and the fact that it has higher speeds. dYdX chain can handle as many as 2,000 transactions per second (TPS). It uses Cosmos, one of the most popular chains in the industry.
dYdX Chain will help the network’s trading platform. However, the challenge will come with scaling it among developers because the industry is quite saturated. In addition to Ethereum, there are now many Layer 1 and Layer 2 networks in the industry.
One of the most recently launched chains is Base by Coinbase. It has become quite popular as it attracted 152 developers in DeFi and over $304 million in TVL. Other competitors will be Arbitrum, Optimism, and Polygon.
dYdX price forecast
The daily chart shows that the DYDX token price made a strong comeback this week as cryptocurrencies continued their remarkable rally. As it rose, the token moved above the key resistance point at $2.25, the highest swing in June and August. It also retested the important point at July 31st.
DYDX crypto price has also jumped above the 50-day and 25-day Arnaud Legoux Moving Averages (ALMA). It also moved above the Ichimoku cloud indicator. Therefore, the token will likely continue rising as buyers target the key resistance at $3, which is 31% above the current level.
