- End of Ethereum bridge support set for June 2025.
- Over 91% community approval stated.
- 52 million ethDYDX tokens remain unmigrated.
In an official update, the dYdX protocol announced that support for the Ethereum bridge will terminate on June 9, 2025, urging migration to the dYdX Chain.
The decision to end the Ethereum bridge affects significant token movements and market strategies, with possible shifts in liquidity and investor actions.
The dYdX Chain Transition
The dYdX protocol has set a definitive date for the conclusion of its support for the Ethereum bridge, effective June 9, 2025. Community governance played a pivotal role, with over 91% approval on the proposal. The transition emphasizes migration to the dYdX Chain, which aims to enhance protocol security and efficiency.
The main entities involved include the dYdX protocol and its governing community. They have prompted users to migrate their holdings of approximately 52 million ethDYDX tokens to native DYDX tokens on the dYdX Chain, ensuring continued functionality and access.
This change has significant implications for liquidity and trading activities, particularly the Total Value Locked (TVL) in cross-chain bridge contracts. Staking activities may increase on the dYdX platform, while ethDYDX’s circulating supply might experience a decrease in availability. “Over 52 million ethDYDX tokens have not yet migrated to the native DYDX on the dYdX chain. After community approval (about 91%), the final on-chain proposal to end bridge support is set for June 9, 2025. Users are urged to migrate their tokens promptly.” source: dYdX.
Financially, the protocol seeks to consolidate its operations and reduce reliance on Ethereum. Market impacts include decreased ERC-20 engagements and potential shifts in related cryptocurrency activities. Stakeholders must consider the migration’s effect on their holdings and trading tactics.
The decision prompts consideration of historical trends, as similar initiatives have witnessed challenges. Existing DeFi protocols transitioning to exclusive chains depict mixed results, demanding strategic planning to mitigate risks and optimize user engagement and utility.
