dYdX Launches Its Very First $DYDX Buyback Program, Boosting the Token's Price by as Much as 10%

On Tuesday, the dYdX community announced its very first $DYDX Buyback Program, a move that created waves throughout the decentralized finance (DeFi) landscape

The dYdX community has announced the launch of its very first $DYDX Buyback Program, a move that has already boosted the token’s price by as much as 10%. As of Tuesday morning, $DYDX is trading at approximately $0.72.

Key Takeaways:

The program will see 25% of dYdX’s net protocol fees used to perform monthly $DYDX token buybacks from the open market.

The Treasury SubDAO will manage the repurchased tokens and put them to yield.

The initiative follows a community vote in early March, which saw a majority of users vote in favor of launching this program.

The community is also discussing the potential for increasing the buyback allocation to 100% of net protocol fees. If this were to happen, the decreased circulation of tokens would, in turn, increase network security even further. The goal is to encourage broader participation in the platform while ensuring that the token remains integral to the protocol’s long-term growth.

This initial 25% allocation could be just a starting point. The dYdX community is already discussing the potential for increasing the buyback allocation to 100% of net protocol fees. If this were to happen, the decreased circulation of tokens would, in turn, increase network security even further. The goal is to encourage broader participation in the platform while ensuring that the token remains integral to the protocol’s long-term growth.

Traders Look for Further Upward Movement Based on Technical Analysis

In addition to the basic psychology of the buyback program, some technical indicators also suggest that this upward trend may continue. The daily chart’s Relative Strength Index (RSI) shows a bullish divergence, meaning that while the price creates a lower low, the RSI sets a higher high. This is often interpreted as an early sign of a trend reversal. In addition, the MACD indicator just crossed bullish, providing another buy signal.

If this momentum is sustained, the $DYDX price could rise toward the $0.84 resistance level and potentially retest the $1.00 weekly resistance.

New Beginnings for the Protocol: dYdX’s Buyback Program

The buyback plan doesn’t exist in a vacuum. The release comes alongside a major upgrade for dYdX with the launch of Spot Trading, Multi-Asset Margining, and EVM Support powered by IBC Eureka.

The next DeFi boom could start as early as September — and last for months — according to dYdX Foundation CEO Charles d’Haussy. This will all be happening as we enter a new phase of growth and maturity for the platform, with all token unlocks expected to end around June 2026. Recognizing the significance of this cross-chain bridge, the dYdX community proposed discontinuing its support as early as June 2025. This decision would lead to the removal of unbridged ethDYDX tokens from circulation, further constraining supply.

dYdX was originally created on Ethereum in 2019 but has since developed its own Layer 1 solution using Cosmos, enhancing both speed and usability. Although the project has seen challenges over the years — including layoffs and a short-lived change in the role of CEO — dYdX has rebounded, continuing to innovate and cement its status as a top-tier decentralized exchange.