DYDX Price Pumps 7% After Buyback Announcement Sparks Investor Optimism
The DYDX token, tied to decentralized derivatives exchange dYdX, surged more 7% in the last 24 hours, hitting $0.725, according to the Ecoinimist Markets page.
The increase follows the project’s announcement of a buyback program, making it the exchange’s first-of-its-kind program to buy back and stake tokens using platform fees.
dYdX’s buyback program targets a reduction in circulating supply with the goal of improving network security, a decision that has sparked immediate market interest. Trading volume also rose alongside the price, a sign of increased investor interest in the token, which has struggled with a 78% loss of value in the past year.
Also read: Decentralized Trading in 2025: Why SynFutures Is the Crypto Trend to Watch
Under the program, the project allocates 25% of its 2024 net protocol fees—totaling $46 million—to buy tokens on the open market. These tokens are then staked to secure the layer 1 blockchain.
Currently, 85% of the token supply remains unlocked, with emissions set to halve in June 2025 and be fully vested by mid-2026. The timing and structure of the program suggest an aggressive push to stabilize the project’s native crypto amidst a challenging market.
Community Vote Steers DYDX Fate
Community governance is key to dYdX’s strategy, with active debates on the project’s forum about potentially increasing the buyback allocation to 100% of net fees. Such a decision could accelerate token reduction and increase validator rewards.
Official X posts from the project show the community involvement, framing the program as part of its long-term ecosystem objectives.
$DYDX holds untapped potential. This buyback program reflects dYdX’s firm belief in the token’s role in the ecosystem.
— dYdX (@dYdX) March 25, 2025
With Spot Trading and Multi-Asset Margining on the horizon thanks to IBC Eureka, the $DYDX token will be even more aligned with the growth of the ecosystem. pic.twitter.com/rf5w6CcLsR
The fee structure now splits revenue across four channels: 40% to staking rewards, 25% to a MegaVault for market support, 25% to buybacks, and 10% to the Treasury SubDAO.
This growth follows a successful 2024 for the project, which recorded $270 billion in trading volume across 150 markets, contributing to a cumulative $1.46 trillion since 2021.
Also read: Guide To Hedging Crypto With Futures
The platform’s recent developments, including dYdX Unlimited in November 2024 and a mobile trading app in February 2025, boosted its position in the DeFi sector.
DYDX’s Future Hangs in Balance
The 24-hour price surge is considered a short-term gain, driven by reduced supply and improved security optics, according to analysts.
Yet, its long-term impacts depend on execution and overall market conditions. The next proposal to remove unbridged Ethereum-based tokens by June adds another layer of supply dynamics, with the potential to tighten circulation further if unclaimed tokens are burned.
With emissions slowing down, the buyback may offer a steady support level for DYDX’s price.
While the short-term market response is positive, some caution that general crypto trends and community decisions will dictate the token’s trajectory.
The forum-based governance process remains a variable, with the potential to either amplify or alter the program’s impact.
For now, the buyback has put the altcoin back in focus, positioning it as a notable player in DeFi’s space.
