Binance Ceases Support For This Major Token Sparking Price Dip Concerns

Binance announced it will stop supporting dYdX token deposits and withdrawals on the Ethereum (ERC20) network. The news comes as the crypto noted a 2% drop in its price today, sparking concerns among investors about its market stability and potential liquidity challenges.

Binance Ceases Support for dYdX Token

Binance revealed on December 31, that it will stop supporting DYDX token deposits and withdrawals via the Ethereum (ERC20) network. The changes will take effect on February 12, 2025, at 02:00 (UTC).

After this deadline, any DYDX deposits made through the ERC20 network will not be credited to user accounts, posing a risk of potential asset loss. The exchange clarified that the transactions will still be supported through other networks available on its platform.

This move comes as the top crypto exchange continues refining its supported assets and networks to streamline its operations. While some users expressed concern about the impact on its liquidity and market dynamics, the platform urged its community to refer to the official announcement for detailed instructions.

The announcement follows a pattern of network optimizations by Binance, aiming to enhance user experience. However, the decision has stirred speculation about its potential effects on its market position.

DYDX Price Context And Trading Volume

DYDX price was trading at $1.48, down 2% in the last 24 hours. The token’s 24-hour low and high were $1.447 and $1.558, respectively. It has a market cap of $1 billion, with a trading volume of $37 million.

The dYdX exchange recorded $231 million in futures trading volume over the past 24 hours, as per Coinglass data. Open interest stands at $202 million, with the BTC/USD pair leading at $94 million in volume, followed by ETH/USD at $46 million.

Meanwhile, Binance added support for Phala Network and dForce tokens recently. The announcement led to an immediate price surge for these tokens, highlighting the market’s responsiveness to its support decisions. As some tokens face challenges, tokens like PHA and DF gain momentum, demonstrating how updates like this shape market trends.