dYdX Price Rallies 35% Following David Sacks’ Appointment as Crypto Czar
President-elect Donald Trump appointed David Sacks as the AI and crypto czar at the White House, leading to a 35% price rally for DYDX, surpassing $2.40. The market capitalization of dYdX, the decentralized trading platform's native cryptocurrency, rose to $1.59 billion, with daily trading volumes increasing by 168% to over $407 million.
DYDX's weekly gains exceeded 40%, while monthly gains reached 117%. The surge followed an investment in DYDX by Sacks’ venture capital firm, Craft Ventures, generating bullish sentiment among investors.
As of the recent rally, DYDX entered the top 90 digital assets by market cap and is approaching a potential breakout from a downward trendline.
Crypto analyst Captain Faibik issued a bullish outlook for DYDX, suggesting that a successful breakout could lead to a 300% increase midterm, potentially pushing the price above $7.
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Photo: Captain Faibik
- During Sacks' appointment, Trump stated:
“[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.”
DYDX Price Surge Driven by Whale Activity
A significant factor in the DYDX price rally is the increased demand from whale investors. Data from IntoTheBlock indicates a shift from a net outflow of $766K in DYDX tokens on December 2 to a net inflow exceeding $2.2 billion on December 4.
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Photo: IntoTheBlock
The accumulation by whale investors often signals building FOMO among retail investors, which may drive further price increases. Additionally, data from DeFiLlama shows that the total value locked in the DeFi protocol has more than doubled, rising from approximately $226 million in November to over $445 million currently.
Analysts anticipate an altcoin season as Bitcoin's price has consolidated around $96,000 over the past week, potentially leading to increased capital flowing into alternative cryptocurrencies during the Christmas rally.