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

DYDX, the native token of decentralized trading platform dYdX, surged impressively on November 6 following reports that it was backed by Trump’s newly appointed White House cryptocurrency advisor.

The altcoin surged 35% in the past day, reaching a seven-month high of $2.45 on November 6, pushing its market value to over $1.67 billion. The recent rally has positioned DYDX as the leading gainer among the top 100 cryptocurrencies by market cap, ranking 94th according to data from CoinGecko at the time of press.

The price increase of dydx (DYDX) increased its two-week gains by over 83% and its monthly gains by over 125%. The daily trading volume of the token reached over $369 million, an increase of 113.9% compared to the previous day.

Why did DYDX price rise today?

DYDX’s recent rally was primarily driven by news that President-elect Donald Trump appointed David O. Sacks as White House Director of Artificial Intelligence and Cryptocurrency.

The news gained traction when Sacks’ venture capital firm, Craft Ventures, made a significant investment in DYDX. This connection between the newly appointed cryptocurrency king and the token has sparked strong bullish sentiment among its investors and pushed DYDX to recent gains.

Another catalyst that likely contributed to the altcoin’s rise is the increased demand observed among whale investors. According to data from IntoTheBlock, the net inflow of DYDX whale holders shifted from a net outflow of $766K worth of DYDX tokens observed on December 2nd to a net inflow of $2.2 billion worth of DYDX tokens on Wednesday, December 4th.

DYDX whale net flow | Source: IntoTheBlock

When whales start accumulating, this often triggers FOMO among retail investors, who then pile into the altcoin, looking for potential profits.

Additionally, according to DeFiLlama data, the total locked value of the DeFi protocol increased from approximately $226 million in November to over $445 million at the time of publication.

Rallies influenced by political developments in the crypto space are not uncommon. Earlier, Reserve Rights’ native token RSR surged 130% in a single day following reports that Trump tapped former SEC Commissioner Paul Atkins, a former advisor to the Reserve Rights Foundation, to replace Gary Gensler as the next SEC Chairman. It increased over .