dYdX Founder Skeptical Of Current Bull Run, Cites Low Participation
06 January 2024 - 8:00AM
NEWSBTC
Taking to X on January 5, Antonio Juliano, the founder of dYdX, a
decentralized exchange (DEX), expressed skepticism regarding the
current crypto bull run. Juliano attributed the recent price surge
to “light trading volumes.” This formation might, despite the
overall confidence, not sustain the uptrend. Founder: This Bull Run
Is Different, Participation Is Low Juliano asserted that a true
bull cycle is not defined solely by price action but by
participation and community enthusiasm. The founder continued that
this “does not seem to be happening yet.” Related Reading: Ethereum
Mega Whales Continue To Buy: Do They Know Something You Don’t? The
founder attributed the lack of widespread adoption to the absence
of “groundbreaking” products that have captured the attention of a
“broader” audience. However, releasing these “products” to the
market could revive activity, driving crypto trading volume.
Juliano’s comments come ahead of the potential approval of the
first spot Bitcoin exchange-traded fund (ETF) by the U.S.
Securities and Exchange Commission (SEC). Among several applicants
are Fidelity, Grayscale, and BlackRock. Insiders claim the agency
could approve the first product in the coming days. A spot
Bitcoin ETF may open the floodgates to institutional investors,
allowing them to gain exposure to the Bitcoin and crypto market in
a regulated manner. As it is currently structured, willing
institutions regulated by the SEC can only get exposure through
Grayscale’s products, including the GBTC. Along the same line, some
commentators have speculated that the SEC’s approval of a spot
Bitcoin ETF could lead to the approval of a spot Ethereum ETF in
2024. An Ethereum Futures ETF was approved in 2023 and is currently
available for trading. Even so, the product, like Bitcoin Futures
ETFs that are widespread, tracks an Ethereum index price, not the
Ethereum spot rate. Even so, whether the SEC will greenlight a spot
Ethereum ETF remains to be seen. Will A Bitcoin ETF Approval
Revive DYDX Demand? Trading volume is a critical metric for
measuring participation and, thus, interest in a particular asset.
The higher it is, the more liquid the asset is. Depending on
the prevailing sentiment, this might support prices or lead to a
sell-off. As the crypto community eagerly waits for the SEC to
decide on the flagship product, altcoins, including DYDX, have been
firm. Related Reading: Maker Market Heats Up: Over 600 Addresses
Complete MKR Trades In Single Day Looking at the DYDX price chart
in the daily chart, prices are moving horizontally but relatively
high from the October 2023 lows. The coin is up roughly 50%
but remains under pressure in the short term. DYDX is down 40% from
November 2023 peaks, trading below December 2023 lows in a bearish
breakout formation. Feature image from Canva, chart from
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