• Crypto & Funx
• 14 Nov, 2024

dYdX cut 35% of its workforce, impacting key team roles.

dYdX’s total value locked (TVL) has declined by around 50% since March, signaling challenges in the DeFi market.

DYDX token initially surged 5.5% today before settling at $1.04.

Switzerland-based decentralized trading platform dYdX recently reduced its workforce by 35%, a move impacting both core team members and operations staff. CEO Antonio Juliano shared the news in a blog post, explaining that a leaner team is essential to dYdX’s future vision.

Juliano that the restructuring is crucial in ensuring that the platform can compete in the increasingly crowded decentralized finance () sector. “Today, I made the incredibly difficult decision to lay off 35% of the dYdX core team. We now have the team we need going forward, but first, we say goodbye to those who have left,” Juliano wrote.

The timing of dYdX’s restructuring reflects the intensified competition within the DeFi space. Rivals like Hyperliquid have made significant headway, with Hyperliquid’s total value locked (TVL) tripling to reach $860 million in 2024, overshadowing dYdX’s current TVL by a factor of three. This sharp increase has highlighted the need for platforms like dYdX to adapt rapidly, streamline operations, and focus on core offerings to maintain their position in the market.

Adding to the pressure, dYdX’s own TVL has dropped by roughly 50% from its peak in March. dYdX isn’t the only firm scaling down; Consensys, a prominent Ethereum development company, announced its own 20% workforce reduction on the same day, pointing to a sector-wide recalibration amid challenging market conditions.

DYDX Token Price

On Wednesday, the platform’s native token DYDX surged to 5.5% earlier during the day. However, at the time of writing, the 24-candle is down by 1%, with the token currently trading at $1.04.

DYDX currently boasts a market cap of $667 million, sitting firmly at the 103rd spot in the list of largest cryptocurrencies. In August, the derivatives platform a major upgrade coming to its chain. Moreover, it Keplr Wallet to enhance user access to its platform last month.

Technical analysts have noted a bullish trend for DYDX, observing that the token has broken above a descending trendline that had previously pointed to a bearish outlook. Following this breakout, DYDX successfully retested the $1.00 support level, indicating potential for further upward movement.

Analysts project a short-term target of $1.40, a potential 40.47% gain if bullish momentum holds. Some even see a more ambitious target of $2.38, aligning with key resistance levels that could yield a 132% gain from current levels.

This bullish investor confidence reflects a broader sentiment that dYdX’s strategic restructuring may help it regain ground in the DeFi landscape, reinforcing its position as a competitive player even amid challenging market dynamics.