The DYDX token on Ethereum (ERC20) is no longer supported by Binance, which has resulted in raised concerns regarding market stability and liquidity.
Binance has declared that it will cease facilitating the deposits and withdrawals of dYdX tokens on the Ethereum (ERC20) network. The news was released as the cryptocurrency experienced a 2% price decrease today, raising concerns among investors regarding its market stability and potential liquidity challenges.
Binance discontinues its support for the dYdX token
On December 31, Binance disclosed that it would cease facilitating deposits and withdrawals of DYDX tokens through the Ethereum (ERC20) network. The modifications will be implemented at 02:00 (UTC) on February 12, 2025.
Any DYDX deposits made through the ERC20 network after this deadline will not be credited to user accounts, potentially resulting in a potential asset loss. The exchange clarified that other networks on its platform will continue to support the transactions.
This development results from the top crypto exchange’s ongoing efforts to optimize operations by refining its supported assets and networks. Although some users were apprehensive about its potential impact on liquidity and market dynamics, the platform encouraged its community to consult the official announcement for thorough instructions.
The announcement is consistent with Binance’s ongoing network optimization efforts designed to improve the user experience. Nevertheless, the decision has sparked speculation regarding its potential impact on its market position.
Trading Volume and Price Context of DYDX
The price of DYDX was $1.48, a 2% decrease in the past 24 hours. The token’s 24-hour low and high were $1.447 and $1.558, respectively. Its trading volume is $37 million, with a market capitalization of $1 billion.
Coinglass data indicates that the dYdX exchange experienced $231 million in futures trading volume within 24 hours. The BTC/USD pair is the most popular pair, with a volume of $94 million, while ETH/USD is the second most popular pair, with a volume of $46 million. The open interest is currently $202 million.
In the interim, Binance has recently supported the Phala Network and dForce tokens. The market’s responsiveness to its support decisions was underscored by the immediate price surge for these tokens following the announcement. Tokens such as PHA and DF gain momentum as specific tokens encounter obstacles, illustrating the influence of updates on market trends.
