dYdX (ethDYDX) (ETHDYDX) Price Prediction

Deep Dive

1. Pending Supply Shock (Bullish Impact)

Overview: A dYdX community proposal aims to sunset the ETHDYDX bridge by mid-2026, permanently stranding 226.9M unbridged tokens (22.6% of max supply). This follows the protocol’s full transition to its native chain, where 77.4% of tokens have already migrated.

What this means: Removing bridge access could artificially reduce circulating supply, creating scarcity-driven upside. However, delayed approval risks prolonging fragmentation between ETHDYDX and chain-native DYDX prices.

2. Buyback-Driven Demand (Mixed Impact)

Overview: Since July 2025, dYdX has deployed protocol revenue to buy ETHDYDX from open markets, staking acquired tokens to secure its chain (CMC Community Post).

What this means: While buybacks theoretically support prices by reducing liquid supply, staking rewards (currently ~7% APY) incentivize holding but could dilute long-term value if emissions aren’t adjusted.

3. Inflation vs. Utility Battle (Bearish Risk)

Overview: ETHDYDX faces 10-20% annual inflation from staking rewards and employee unlocks until 2026. Governance proposals to cut emissions by 44% (via lower validator counts) and redirect 50% of fees to stakers aim to counterbalance this.

What this means: Without adoption-driven fee growth, even optimized tokenomics might struggle to offset structural sell pressure from unlocks.

Conclusion

ETHDYDX’s medium-term trajectory hinges on executing supply constraints (bridge closure, buybacks) while accelerating fee capture to fund staker incentives. The token remains vulnerable to broader altcoin sentiment, with the CMC Altcoin Season Index rising 32.5% monthly but still neutral at 53/100.

Will Q4 governance votes successfully align inflation with chain revenue growth?