dYdX Founder Skeptical Of Current Bull Run, Cites Low Participation

Dalmas Ngetich

1 year ago

2 mins read

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Taking to X on January 5, Antonio Juliano, the founder of dYdX, a decentralized exchange (DEX), expressed skepticism regarding the current crypto bull run. Juliano attributed the recent price surge to “light trading volumes.” This formation might, despite the overall confidence, not sustain the uptrend.

Founder: This Bull Run Is Different, Participation Is Low

Juliano asserted that a true bull cycle is not defined solely by price action but by participation and community enthusiasm. The founder continued that this “does not seem to be happening yet.”

The founder attributed the lack of widespread adoption to the absence of “groundbreaking” products that have captured the attention of a “broader” audience. However, releasing these “products” to the market could revive activity, driving crypto trading volume.

Juliano’s comments come ahead of the potential approval of the first spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Among several applicants are Fidelity, Grayscale, and BlackRock. Insiders claim the agency could approve the first product in the coming days.

A spot Bitcoin ETF may open the floodgates to institutional investors, allowing them to gain exposure to the Bitcoin and crypto market in a regulated manner. As it is currently structured, willing institutions regulated by the SEC can only get exposure through Grayscale’s products, including the GBTC.

Along the same line, some commentators have speculated that the SEC’s approval of a spot Bitcoin ETF could lead to the approval of a spot Ethereum ETF in 2024. An Ethereum Futures ETF was approved in 2023 and is currently available for trading. Even so, the product, like Bitcoin Futures ETFs that are widespread, tracks an Ethereum index price, not the Ethereum spot rate. Even so, whether the SEC will greenlight a spot Ethereum ETF remains to be seen.

Will A Bitcoin ETF Approval Revive DYDX Demand?

Trading volume is a critical metric for measuring participation and, thus, interest in a particular asset. The higher it is, the more liquid the asset is.

Depending on the prevailing sentiment, this might support prices or lead to a sell-off. As the crypto community eagerly waits for the SEC to decide on the flagship product, altcoins, including DYDX, have been firm.

Looking at the DYDX price chart in the daily chart, prices are moving horizontally but relatively high from the October 2023 lows.

DYDX price trending downward on the daily chart | Source: DYDXUSDT on Binance, TradingView

The coin is up roughly 50% but remains under pressure in the short term. DYDX is down 40% from November 2023 peaks, trading below December 2023 lows in a bearish breakout formation.

Feature image from Canva, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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