Market makers offer trades through order book & make money on bid-ask spreads (supply-side fees).

dYdX is a non-custodial trading and derivatives protocol initially built on Ethereum and later expanded to their own blcokchain built on top of the Cosmos SDK. dYdX was founded by Antonio Juliano and launched in 2017.

DYDX tokenholders own and govern the protocol. dYdX Trading Inc. currently takes all of the total trading fees paid by traders (revenue). dYdX’s investors include a16z, Polychain, The Spartan Group, etc.

governance

github

twitter

discord

etherscan

website

Derivative exchanges

dYdX

# dYdX Token turnover (fully diluted) Methodology

## 1. Overview

Token turnover (fully diluted) measures the liquidity and trading activity of dYdX's native token relative to its maximum potential market capitalization. The metric is calculated as annualized token trading volume divided by fully diluted market cap, providing insights into how frequently the token's entire potential supply would turn over based on current trading patterns. This metric helps assess token liquidity, market efficiency, and investor trading behavior while accounting for all tokens that could potentially enter circulation.

## 2. Data sources

- **CoinGecko daily market data**: End-of-day price feeds, trading volumes, and market capitalization data aggregated from multiple cryptocurrency exchanges
- **CoinGecko token trading volume data**: Daily aggregated trading volumes across supported exchanges for dYdX tokens
- **CoinGecko fully diluted market cap data**: Market capitalization calculations using maximum token supply including unvested, locked, and future emission tokens
- **Token metadata**: Information about dYdX's token migration from Ethereum-based DYDX to dYdX Chain's native token, including the transition date and corresponding CoinGecko identifiers

## 3. Step-by-step calculation

### Component A: Token trading volume extraction
- **Purpose**: Obtain daily trading volume data for dYdX tokens across all supported exchanges
- **Logic**: Extract daily trading volumes from CoinGecko's aggregated exchange data, which combines volume from major cryptocurrency exchanges. Handle dYdX's token migration by using the appropriate CoinGecko identifier: `dydx` for dates before November 27, 2023 (representing the original Ethereum-based token), and `dydx-chain` for November 27, 2023 onwards (representing the native dYdX Chain token). Apply zero-filling strategy to handle missing data points, ensuring continuous daily coverage.
- **Key fields**: `daily_timestamp` for date alignment, `trading_volume_usd` for volume amounts, `coingecko_id` for token identification

### Component B: Fully diluted market cap calculation  
- **Purpose**: Calculate the market capitalization using the maximum potential token supply rather than just circulating supply
- **Logic**: Retrieve fully diluted market cap data from CoinGecko, which multiplies the current token price by the maximum possible supply including all unvested tokens, locked tokens, and future emissions. Use the same token migration logic as trading volume, switching between `dydx` and `dydx-chain` CoinGecko identifiers at the November 27, 2023 transition date. Apply zero-filling for missing data points to maintain daily continuity.
- **Key fields**: `daily_timestamp` for date alignment, `market_cap_fully_diluted_usd` for market cap values, `coingecko_id` for correct token identification

### Component C: Price data for validation
- **Purpose**: Provide supporting price data for market cap calculations and data quality validation
- **Logic**: Extract end-of-day token prices from CoinGecko using the same migration-aware logic. For dates before November 27, 2023, use the `dydx` identifier for the original Ethereum-based token. For November 27, 2023 and after, use the `dydx-chain` identifier for the native dYdX Chain token. This ensures price data aligns with the correct token across the migration period.
- **Key fields**: `daily_timestamp` for temporal alignment, `price_usd` for price values

### Final aggregation
- **Combining components**: Join trading volume and fully diluted market cap data on daily timestamps, ensuring both metrics reference the same token version (pre or post-migration) for each date. The calculation uses a macro that handles the division operation and applies appropriate data quality measures.
- **Currency conversion**: All values are already in USD from CoinGecko sources, eliminating the need for additional currency conversion
- **Time aggregation**: Data is maintained at daily granularity with daily timestamp boundaries. Trading volume represents 24-hour trading activity ending at the timestamp date.
- **Final calculation**: Annualize the daily trading volume by multiplying by 365, then divide by the fully diluted market cap. The formula is: (Daily Trading Volume × 365) ÷ Fully Diluted Market Cap. This yields a ratio representing how many times the token's maximum potential supply would turn over annually based on current daily trading patterns. Values are processed through a finalization macro that applies the zero-filling strategy for any missing data points and standardizes the output format.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

${token_trading_volume} / ${market_cap_fully_diluted}

Average daily token trading volume divided by fully diluted market cap.

dYdXDYDX

Token turnover (fully diluted)

Token turnover (fully diluted)

Competitive landscape