dYdX Cuts 35% of Staff as CEO Antonio Juliano Returns to Lead a 'Leaner' Team

Despite this tough decision, the price of dYdX's native token, dydx, jumped by 5% as traders welcomed the restructuring news.

Decentralized derivatives platform dYdX has announced a significant reduction in its workforce, laying off 35% of its team, including key members. However, despite this tough decision, the price of dYdX’s native token, dydx, jumped by 5% as traders welcomed the restructuring news.

The layoffs were announced by CEO Antonio Juliano in a company blog post on October 14. Juliano, who returned on October 10 after a six-month break, stressed the need for a leaner team to achieve the platform’s future goals.

“Today, I made the incredibly difficult decision to lay off 35% of the dYdX core team. We now have the team we need going forwards, but first we say goodbye to those who have left,” wrote Juliano.

The layoffs come amid increasing competition in the DeFi space, particularly from rival Hyperliquid, which has seen its total value locked (TVL) soar to around $860 million. In contrast, dYdX’s TVL has dropped by about 50% since its peak in March.

This shift in strategy is not unique to dYdX; many companies in the crypto space, including Consensys, are also cutting staff due to tough market conditions. On the same day as dYdX’s layoffs, Consensys announced it would reduce its workforce by 20%.

Despite the challenges, the market responded positively to dYdX’s changes. Analysts view the layoffs as a step toward sustainable growth. The $DYDX token has recently broken above a bearish trendline, with a support level now at $1.00, according to CoinMarketCap.

If the upward trend continues, analysts predict the token could reach $1.40 in the short term and potentially $2.38 later on, signaling a bright future for dYdX.

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