DYDX
The 21Shares dYdX ETP (ticker “DYDX”) offers investors a liquid way to integrate the ETP, which tracks DYDX, into their portfolios through their bank or broker, providing a transparent way to participate in the future of decentralized crypto trading.
Overview
Description
The 21Shares dYdX ETP (ticker “DYDX”) offers investors a liquid way to integrate the ETP, which tracks DYDX, into their portfolios through their bank or broker, providing a transparent way to participate in the future of decentralized crypto trading.
Benefits
Robust tokenomics that drive growth
The protocol links platform performance to tokenholder value, allocating 25% of net fees to buy back the DYDX token, thereby shrinking the supply while boosting staking yields. Since the buyback program launched in March 2025, it has returned $2.79 million to the ecosystem.
Additionally, the governance-approved revenue-sharing framework distributes 25% of the fees to MegaVault (a pooled DeFi vault that functions as a fund-of-funds, automatically allocating capital across multiple strategies to optimize risk-adjusted returns) depositors and 10% to the Treasury, with rewards paid in USDC instead of inflationary tokens, ensuring stable value for participants.
In 2024, the platform generated $70 million in annual protocol fees on more than $300 billion in cumulative trading volume. That said, since the launch of its revenue-sharing mechanism in early 2025, dYdX has distributed over $50 million in real USDC to its users. Unlike peers that rely on inflationary rewards or indirect token buybacks, dYdX delivers recurring cash flows in stablecoin, real, transparent, and sustainable value in the form of USDC. This model creates a self-reinforcing cycle of growth, deflationary tokenomics, and long-term yield, positioning dYdX as a compelling investment opportunity.
Powering DeFi on its own chain
dYdX has made a bold leap from an Ethereum application to its own sovereign blockchain - the dYdX Chain - on the Cosmos SDK, delivering speed, scalability, and decentralization. Its off-chain order book supports high-frequency trading while eliminating reliance on other networks and replacing traditional gas fees with trading fees.
Through this innovative fee model, dYdX captures value from every transaction. Unlike other models where fees are paid to the base chain, this approach channels all trading revenues to the protocol, directly aligning platform usage with potential tokenholder upside.
This allows the dYdX Chain to process up to 2,000 transactions per second, a 200x improvement over the previous Layer 2, which handled just 10 trades per second. Moreover, dYdX is one of the most decentralized, purpose-built blockchains, governed and secured by over 40 independent validators, which is significantly higher than most competitors, ensuring resilience, neutrality, and long-term credibility. This edge not only cements dYdX’s leadership in performance and efficiency but also positions it to capture growing market share.
Poised for upside
dYdX remains a compelling investment opportunity despite growing competition. dYdX has processed $1.4T+ in cumulative trading volume across all protocol versions, maintains 15,000 weekly active traders, and generated $7.7 billion in trading volume in July. With the total addressable market projected to reach $4 trillion in volume by year-end, this underscores substantial growth potential ahead.
The number of DYDX token holders has surged 400% since 2021, reflecting expanding adoption and network effects. Additionally, the dYdX Foundation has published a MiCA-aligned whitepaper, clarifying token features and compliance in the EU, which positions dYdX favorably relative to competing perpetual platforms.
The disparity between dYdX’s robust trading activity and its current valuation highlights substantial upside potential.
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Key Information
Ticker Symbols
Performance
Market data provided by Alpha Vantage and CryptoCompare. Not investment advice, for informational purposes only. Historical performance is not an indication of future performance.
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Additional Information
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