TL;DR
- dYdX lays off 35% of its core team amid decline in total value locked (TVL).
- The move did not affect the price of the dYdX token, which continues to trade above $1.
- Other cryptocurrency companies, such as Consensys, have also announced layoffs due to macroeconomic pressures.
On October 30, 2024, Antonio Juliano, founder of dYdX, announced a significant reduction in his workforce, laying off 35% of his staff.
This decision was described by Juliano as incredibly difficult, and he emphasized that they now have the necessary team to move forward.
In his statement, Juliano expressed his gratitude to those who have left the company, acknowledging the years of dedication and effort they have invested in dYdX.
This message can be found in his official post, where he also highlights the importance of friendships and mutual support within the dYdX community.
Despite the layoffs, the dYdX token price remained stable, trading above $1, up 8% in the past week.
This price stability comes in contrast to the drastic drop in dYdX’s total value locked (TVL), which has dropped from over $500 million in March to just $287 million in October.
In this context, Hyperliquid, a competitor of dYdX, has seen its TVL grow exponentially, reaching an all-time high of $870 million in 2024.
Adapting in a challenging market by dYdX
The decision to restructure the team not only reflects internal changes at dYdX, but also the general difficulties facing the cryptocurrency industry.
Other companies in the sector, such as Consensys, have also reduced their workforces, citing macroeconomic pressure and regulatory challenges as main factors.
This type of restructuring has become common in an environment where uncertainty and competition are increasingly intense.
Juliano also highlighted that the company must adapt to a new vision and approach, which is different from the one it originally had.
Despite the pain of saying goodbye to friends and colleagues, the dYdX founder maintains an optimistic outlook, confident that the remaining team is ready to move forward with clarity and renewed passion.
In his statement, he emphasized that what they have built goes beyond a simple company and that the relationships and experiences shared will endure.
This restructuring move is a reminder of the challenges facing the crypto ecosystem.
As dYdX strives to adapt and reinvent itself, the industry as a whole is undergoing significant changes.
However, dYdX’s commitment to innovating and creating market-relevant products remains steadfast, offering hope for the future in a competitive and ever- evolving environment.
