DYDX - Some change in market participant behavior
Assets covered: DYDX
Metrics used: MVRV 7D, Network Growth, Supply on Exchanges, Social Volume
Supply on exchanges
We are observing a change in market participant behavior.
We previously saw sharp spikes in Supply on exchanges leading to falling prices but following the dydx v4 announcement on 22nd June, the spikes in Supply on exchanges doesn't seem to bother the market at all.
Instead, price continued to rally into it.
For the past 6 months, things were more or less quiet...until the announcement of v4. That definitely brought a good amount of attention, which likely translates to new participants as well.
Network Growth which tracks fresh addresses that hold DYDX, saw huge spikes when price took a massive dump in May and the recent bottom in mid-June.
But since the v4 announcement, we are starting to see some FOMO stepping in as huge spike in Network Growth coincided with a price rally.
DYDX 's MVRV 7D which measures the short-term profit/loss of holders is showing that we have just entered the danger zone, which historically saw short-term holders who are well in profit....take some off the table.
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