Following the appointment of David Sacks as AI and crypto czar, DYDX saw a 35% price rally, with daily trading volumes surging by 168%, amid links to Sack’s venture capital investment firm.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
Soon after President-elect Donald Trump appointed David Sacks to the position of AI and crypto czar at the White House, DYDX DYDX $1.22 24h volatility: 6.5% Market cap: $880.30 M Vol. 24h: $55.97 M price rallied 35% in hours shooting all the way past $2.40. The native cryptocurrency of the decentralized trading platform dYdX witnessed this sharp surge with its market cap surging all the way to $1.59 billion, with a staggering 168% surge in daily trading volumes crossing $407 million.
With this move, DYDX price extended its weekly gains to more than 40% along with its monthly gains extending to 117%. The altcoin gained momentum after Sacks’ venture capital firm, Craft Ventures, made a significant investment in DYDX. This link between the newly appointed crypto czar and the token sparked strong bullish sentiment among investors, driving recent gains for DYDX.
As of today’s rally, DYDX has climbed several ranks entering the list of top 90 digital assets by market cap. Furthermore, the DYDX price is now eyeing a downward trendline breakout.
Crypto analyst Captain Faibik has issued a bullish outlook for DYDX, urging investors to keep an eye on the token as it shows potential for a major trendline breakout. If the breakout is successful, Faibik predicts a possible 300% rally in the midterm. This could push the dYdX altcoin all the way to $7 and above from here.
Photo: Captain Faibik
“[Sacks] will work on a legal framework so the Crypto industry has the clarity it has been asking for, and can thrive in the US.”
Another major factor behind the DYDX price rally is the rapid surge in the demand by whale investors for the altcoin. Data from IntoTheBlock shows that DYDX whale holder net flows shifted significantly, from a net outflow of $766K in DYDX tokens on December 2 to a net inflow of over $2.2 billion on December 4.
Photo: IntoTheBlock
The accumulation by the whale investors typically hints at a FOMO building up among the retail community, which can lead to further price rallies. Additionally, data from DeFiLlama reveals that the DeFi protocol’s total value locked has more than doubled, rising from approximately $226 million in November to over $445 million at the time of writing.
Crypto analysts are already predicting the emergence of the altcoin season as Bitcoin price has consolidated for the past week at around $96,000. As part of the Christmas rally, we can see more capital flowing into alts.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
