Artificial Intelligence

FOMO

Reserve Rights

Reserve

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 (<a href="https://crypto.news/price/dydx/" target="_blank">DYDX</a>) ‘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. 
<h2 class="wp-block-heading" id="why-did-dydx-price-soar-today">Why did DYDX price soar today?</h2> 
DYDX’s recent rally was primarily driven by <a href="https://x.com/WuBlockchain/status/1864856024173433176" target="_blank" rel="nofollow">reports </a>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 <a href="https://www.rootdata.com/Investors/detail/Craft%20Ventures?k=MTA5NjY%3D" target="_blank" rel="nofollow">investment </a>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. 
 You might also like: <a rel="" href="https://crypto.news/bnb-price-is-beating-ethereum-and-bitcoin-cz-responds/"> BNB price is beating Ethereum and Bitcoin; CZ responds </a> 
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. 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="1200" height="800" src="https://crypto.news/app/uploads/2024/12/ITB_dydx_large_holders_netflow_ethereum_2024-12-06T08_52_04.964Z.png" alt="DYDX rallies 35% amid reports of backing by Trump's new crypto czar - 40" class="wp-image-14316787">
 <figcaption class="wp-element-caption">
 DYDX whale net flow | Source: <a href="https://app.intotheblock.com/coin/DYDX/deep-dive?group=ownership&amp;chart=all" target="_blank" rel="nofollow">IntoTheBlock</a>
 </figcaption>
</figure> 
When <a href="https://crypto.news/sand-hits-yearly-high-after-40-rally-as-whales-take-notice/" target="_blank">whales begin accumulating</a>, it typically sparks FOMO among retail investors, who then pile into the altcoin, seeking potential profits. 
Further, according to DeFiLlama <a href="https://defillama.com/chain/dYdX" target="_blank" rel="nofollow">data</a>, 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 <a href="https://crypto.news/reserve-rights-token-rsr-jumps-136-amid-sec-chair-news/" target="_blank">reports </a>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. 
 Read more: <a rel="" href="https://crypto.news/heres-how-ethereum-is-getting-ready-for-the-4k-mark/"> Here’s how Ethereum is getting ready for the $4k mark </a>

DYDX rallies 35% amid reports of backing by Trump’s new crypto czar

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