- dYdX has acquired the social trading app Pocket Protector.
- The Pocket Protector team will integrate with dYdX, and co-founder Eddie Zhang will become president.
- This move aligns with dYdX’s focus on expanding into social trading.
- dYdX has lost market share to competitors, with trading volumes and token value falling sharply.
- The company is pursuing new products and growth plans to reverse its declining trend.
dYdX, a decentralised exchange, has acquired Pocket Protector, a social trading application, as part of a strategic effort to strengthen its position in the crypto trading space. The deal, announced recently, will see the teams merge, with Pocket Protector’s co-founder Eddie Zhang taking on the role of president at dYdX.
Pocket Protector operates as a platform for group trading via Telegram, allowing users to trade together within group chats. Since its founding in 2024, the app has attracted more than 50,000 users and reported annualized revenue exceeding $1 billion, according to statements from dYdX representatives.
“What’s especially exciting is their technology will enable a rapid expansion of the core dYdX product in the months to come,” said Antonio Juliano, CEO of dYdX, in a comment to DL News. Juliano also highlighted the Pocket Protector team’s experience in social media, app development, trading, and blockchain technology, and described them as both a cultural and technical fit for dYdX.
The financial terms of the acquisition have not been disclosed. Pocket Protector previously raised $7 million from investors such as Electric Capital and Dragonfly Capital earlier in 2024, at a valuation that was not made public.
dYdX pioneered leverage trading on blockchain platforms beginning in 2017 and reached a milestone processing $1.5 trillion in cumulative trading volume after launching perpetual futures in 2020, according to data from DeFiLlama. However, its monthly trading volumes have dropped significantly—from a high of $107 billion in October 2021 to $4.7 billion in June 2024—a decline of roughly 95%. The platform currently ranks eighth among onchain leverage trading providers, while competitors like Hyperliquid lead the market with $215 billion in June 2024 trading volume.
The value of the dYdX token has also declined steeply, falling more than 85% from its all-time high in 2024. The company now plans to pursue new initiatives, products, and protocol upgrades as stated in its recent announcements.
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