By way of this partnership, dYdX aims to improve the staking options for dYdX users, allowing them to enjoy some of the benefits of the Cosmos network.
As expected, dYdX's price has responded positively to the news, but then…
Is this new development here to stay? Will dYdX continue to be bullish? What is liquid staking anyway?
To understand how important the new development on dYdX is, we need to understand what Liquid Staking is.
Liquid staking allows users to stake (or lock) their tokens on a network. However, the difference between this kind of staking and regular staking is that Liquid staking protocols give their users a "liquidity token".
These tokens represent the staked assets on the network and can be used (just like most other cryptos) for lending, borrowing, staking and even earning interest.
In essence, liquid staking allows crypto users to enjoy the rewards that come with staking, and also use other defi services at the same time.
If you didn't know, the total value locked in liquid staking derivatives overall currently sits at around $34 billion according to data from DefiLlama.
Liquid staking, as we have established, is a very huge market in the defi space.
And as it turns out, dYdX plans to tap into this huge market by way of a recent partnership with Stride, announced earlier this week.
According to this announcement, dYdX has just launched liquid staking options on the dydX chain.
This upgrade currently only works with Stride for now, which will allow dYdX users to stake their $DYDX tokens and receive liquidity tokens called stDYDX tokens in return. According to the announcement blog post, these stDYDX tokens will represent an equal stake in the DYDX pool and will be transferrable and tradeable.
Within the next few days/weeks, other staking providers like Persistence and Quicksilver will join the fray, helping dYdX expand even further.
In even better news, users who stake their tokens will also receive a part of the trading and transaction fees generated on dYdX v4 in the form of Circle's USDC.
This is huge news for dYdX and its users and is bound to bring in fresh liquidity inflows as more users hop on this huge opportunity.
What's happening with DyDx's price though?
According to data from CoinMarketCap, dYdX has rallied to the upside by as much as 5% over the last day.
Moreover, its trading volume is already skyrocketing, as shown by the 143% spike to around $9.7 million, over the last 24 hours as shown above.
There might even be a huge opportunity for some more price gains in the charts, as shown below:
dYdX's price action was relatively stagnant throughout 2023, until 17 October, when the general market started to rally.
DyDx joined in this rally and exploded upwards by around 146% from $1.775 to around $4.369.
However, the cryptocurrency soon lost most of it as it declined to $2.3—but this isn't all.
As shown above, DyDx is showing signs that it is ready to recover, and we might be looking at an explosive rally, just waiting to happen.
As long as DyDx doesn't break below the ascending trendline shown above (or below $2.47), we are bound to see the cryptocurrency travel upwards from here.
DyDx will likely rally by another 55% from current price levels (at least), as the cryptocurrency tries to reclaim $4.365.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.