DYDX, the native token of the decentralized trading platform dYdX, recorded an impressive rally on Nov. 6 following reports of it being backed by Trump’s newly appointed White House cryptocurrency advisor.
The altcoin surged 35% over the past day, hitting a seven-month high of $2.45 on Nov. 6, bringing its market cap to over $1.67 billion. The recent rally positioned DYDX as the leading gainer among the top 100 cryptocurrencies by market cap, ranking 94th according to data from CoinGecko at press time.
dydx (DYDX) ‘s price surge also extended its fortnightly gains to over 83% while boosting its monthly gains to more than 125%. Daily trading volume for the token jumped 113.9% over the previous day to over $369 million.
Why did DYDX price soar today?
DYDX’s recent rally was primarily driven by reports that President-elect Donald Trump appointed David O. Sacks as the White House Director of Artificial Intelligence and Cryptocurrency.
The news gained traction as Sacks’ venture capital firm, Craft Ventures, has made a significant investment in DYDX. This connection between the newly appointed crypto czar and the token fueled strong bullish sentiment among its investors, propelling DYDX to recent gains.
Another catalyst likely contributing to the altcoin’s rally is the rising demand observed among whale investors. According to data from IntoTheBlock, DYDX whale holder net flows shifted from a net outflow of $766K worth of DYDX tokens observed on Dec. 2 to a net inflow of over $2.2 billion worth of DYDX tokens on Wednesday, Dec. 4.
When whales begin accumulating, it typically sparks FOMO among retail investors, who then pile into the altcoin, seeking potential profits.
Further, according to DeFiLlama data, the DeFi protocol’s total value locked has also surged from around $226 million in November to over $445 million at press time.
Rallies influenced by political developments are not uncommon in the crypto space. Previously, Reserve Rights’ native token, RSR, surged over 130% in a single day following reports that Trump had approached former SEC Commissioner Paul Atkins, a former advisor to the Reserve Rights Foundation, to succeed Gary Gensler as the next SEC Chair.
