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dYdX Foundation announces the termination of Ethereum bridge support for ethDYDX tokens, urging holders to migrate before June 9, 2025.
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This strategic move consolidates dYdX operations onto its native blockchain, reflecting a community-backed governance decision with 91% approval.
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As stated by Mega from the dYdX Governance Team, “We strongly encourage all ethDYDX holders to complete their migration to DYDX on the dYdX Chain before the deadline to avoid liquidity loss.”
dYdX to end ethDYDX Ethereum bridge support by June 2025; urgent migration advised to safeguard token liquidity and value.
dYdX Ethereum Bridge Support Ending: Implications for ethDYDX Token Holders
The dYdX Foundation has officially declared that support for the Ethereum-based ethDYDX bridge will cease on June 9, 2025. This decision follows a community governance proposal that received overwhelming support, with 91% of voters in favor. The termination marks a significant transition as dYdX shifts its focus entirely to its native blockchain, aiming to enhance scalability and operational efficiency. Token holders currently utilizing the ethDYDX bridge must take prompt action to migrate their assets to the dYdX Chain to maintain liquidity and avoid potential losses. The bridge’s discontinuation will render the existing Ethereum-based tokens obsolete, emphasizing the importance of timely migration.
Community Governance and Strategic Shift to dYdX Chain
The move to end Ethereum bridge support is a direct result of community-driven governance, showcasing the decentralized decision-making process within the dYdX ecosystem. By consolidating operations on the dYdX Chain, the platform aims to leverage its native infrastructure for improved transaction speeds and reduced fees. Mega, representing the dYdX Governance Team, highlighted the critical nature of this transition, urging users to unwind positions on Ethereum-based pools and migrate tokens ahead of the June 2025 deadline. This strategic pivot aligns with broader industry trends favoring native chains over cross-chain bridges to mitigate risks associated with interoperability and security.
Market Impact and Migration Trends of ethDYDX Tokens
As of early June 2025, approximately 94% of ethDYDX tokens have already been migrated to the dYdX Chain, reflecting strong community compliance with the migration directive. Despite this progress, the remaining holders face an urgent deadline to avoid liquidity disruptions. Market data from CoinMarketCap indicates ethDYDX is trading at $0.54 with a market capitalization of $22.7 million, showing a modest 0.26% increase over 24 hours but a notable 21.89% decline over the past month. The 24-hour trading volume stands at $8.81 million, with a circulating supply of 42.33 million tokens. Historical precedents, such as Binance Coin’s (BNB) migration from ERC-20 to its native chain, illustrate the risks of non-migration, including token illiquidity and devaluation.
Regulatory and Liquidity Considerations Post-Migration
Token migrations like dYdX’s transition carry significant implications for liquidity and regulatory compliance within decentralized finance (DeFi). Coincu’s research team emphasizes that successful migration enhances token utility and may positively influence regulatory perceptions by reducing reliance on cross-chain bridges, which are often scrutinized for security vulnerabilities. However, incomplete migrations risk fragmenting liquidity pools and complicating market dynamics. Stakeholders are advised to monitor migration progress closely and engage with official dYdX communication channels to ensure compliance and optimal asset management.
Conclusion
The upcoming cessation of Ethereum bridge support for ethDYDX tokens represents a pivotal moment for the dYdX ecosystem and its community. With a firm deadline set for June 9, 2025, token holders must prioritize migration to the native dYdX Chain to preserve liquidity and maintain participation in the platform’s evolving DeFi infrastructure. This transition underscores the growing trend of blockchain projects consolidating operations on native chains to enhance security, scalability, and governance. Staying informed and proactive will be essential for all stakeholders navigating this significant network upgrade.
