KPK is pleased to present the dYdX Treasury SubDAO’s March Community Update, which outlines recent developments, market conditions, DYDX metrics, and programme execution.
This update is accompanied by KPK’s March Treasury Report, which provides a detailed review of treasury performance and strategy.
Market Update
March marked a tentative stabilisation for crypto markets after an extended period of weakness. Risk appetite improved modestly as Bitcoin spot ETF inflows resumed for the first time in 2026, though broader conditions remained cautious with elevated BTC dominance and mixed altcoin performance.
Market Performance
BTC traded in a wide range throughout March, opening the month at approximately $66,850 and rallying to a mid-month high of approximately $75,670 on 17 March, before pulling back following the FOMC meeting on 18 March. It closed March at approximately $68,140, up 1.9% month on month. The recovery represented a modest break in a prolonged period of weakness since late 2025, though the gains were concentrated in the mid-month rally window and largely unwound by month-end.
ETH outperformed BTC in March, opening at approximately $1,966 and closing the month at approximately $2,104, delivering a 7.0% monthly return and ending a prolonged multi-month decline (CryptoNewsBytes ETH Analysis). ETH reached an intra-month high of approximately $2,376 on 16 March before retracing alongside BTC after the FOMC decision. On-chain data indicated strong accumulation during the month, suggesting renewed institutional interest. Network activity remained elevated, though on-chain fee generation remained relatively subdued, reflecting the ongoing shift of activity to L2 networks (general industry trend, e.g. Ethereum L2 scaling overview).
Across the broader market, mid-caps and long-tail assets remained under pressure as BTC dominance continued to climb. Exchange tokens and L2 tokens underperformed as traders maintained a preference for more liquid majors and stablecoins.
Institutional Flows
ETF flows rebounded meaningfully in March. Bitcoin spot ETFs recorded net inflows of approximately $1.32 billion, marking the first monthly inflow of 2026 after January’s $1.61 billion in outflows and February’s $206 million exit (Investors.com ETF data). A concentrated seven-day inflow streak from 9–17 March accounted for approximately $1.47 billion, before the FOMC meeting on 18 March prompted a single-session $129 million outflow. Combined AUM across all U.S. spot Bitcoin ETFs reached approximately $128 billion by mid-March.
ETH spot ETF flows were mixed throughout March, with inflow days early in the month and outflows later in the period (ETF flow tracking platforms such as https://sosovalue.com/ and CoinGlass: https://www.coinglass.com/). Total assets under management in spot Ethereum ETFs stood at approximately $12.3 billion by month-end.
Market Structure & Dominance
Bitcoin dominance continued its steady climb, reaching approximately 56.1% by the end of March, its highest level since April 2021 (CapitalStreetFX analysis). The rising dominance, despite improving ETF flows, indicated that the risk-on rotation remained selective and concentrated in BTC rather than spreading across the broader digital asset ecosystem.
Total digital asset market capitalisation closed March at approximately $2.4 trillion, broadly unchanged month on month, reflecting the offsetting forces of BTC recovery and continued altcoin weakness.
DYDX Token Update
DYDX remained a relative laggard through most of March, trailing the broader benchmark basket during both the early-month risk-off move and the late-month pullback. The token did participate in the mid-month rebound, but the recovery was shallower than ETH’s and far weaker than HYPE’s, which continued to lead the group amid strong momentum and supportive token-specific flows. By month-end, DYDX had recovered enough to finish slightly ahead of BTC on a normalised basis, but it still closed well below ETH and materially behind HYPE, leaving it near the bottom of the basket for the period.
Trading activity on the DYDX perpetual markets remained highly concentrated in the BTC-USD and ETH-USD pairs during March. BTC-USD continued to dominate platform activity, generating approximately $3.06B in notional volume across 1.08M trades, accounting for 71.23% of total market share.
ETH-USD ranked second-largest, recording approximately $841.3M in notional volume across 276.8k trades, representing 19.59% of total activity.
SOL-USD remained the third most active market, generating approximately $319.8M in notional volume across 144.3k trades, with a 7.45% share of platform volume.
Beyond the top three markets, trading activity was highly fragmented. XRP-USD recorded approximately $4.92M in volume across 5.8k trades, while PAXG-USD and HYPE-USD generated $4.32M and $3.65M in volume, respectively. Other long-tail markets—including PEPE-USD, ADA-USD, DOGE-USD, and WLD-USD—each accounted for less than 0.1% of total platform volume, highlighting the continued concentration of liquidity in the major pairs.
While BTC-USD continued to dominate, March data shows a small but notable shift toward increased ETH and SOL participation, suggesting a modest reduction in concentration relative to February, though liquidity remains heavily skewed toward major pairs.
Buyback Programme — March Update
Open-market activity acquired 1,950,055 DYDX at an average price of $0.09512, executed across 3,142 orders, for a total outlay of $185,487 USDC. Execution incurred approximately $1,417 in slippage, alongside $185 in exchange fees, reflecting moderate market impact during the period.
No OTC transactions were executed during March, with all buyback activity conducted via open-market operations.
In addition, the programme deployed $192,565 USDC into stablecoin swaps, converting into 192,604 USDT across 78 transactions, maintaining a near 1:1 execution with negligible slippage and fees. Tokens were periodically transferred to the Treasury SubDAO buyback account. All buyback activity remains visible through the community-maintained Buyback Dashboard.
Staking Programme
We executed the periodic review #5 at the beginning of March. The Treasury SubDAO continuously monitor of the validator active set to ensure optimal participation and performance. Minor adjustments will be implemented throughout the quarter as needed, reallocating stake to maintain high uptime and efficiency, and to ensure DYDX remains productively deployed at all times.
Asset Allocation
As of 31 March, the Treasury SubDAO maintains the same overall composition reported last month, with updated DeFi strategy performance and liquidity movements reflected below.
The portfolio currently consists of:
- 84.25 M DYDX (90.8%);
- 866,154 USDC (9.2%)
Yield Generation
Staking Programme: $ 10,393 USDC generated by the Staking Programme.
Token Allocation %
Other Updates
Two Directors of the Treasury SubDAO were replaced to reflect organisational changes within KPK and to support operational continuity. This is the execution of the #365 proposal.
Next Steps for April
- Buyback programme: continue DYDX purchases across CEX and OTC channels
- Following the approval of Proposal #372, the Treasury SubDAO will proceed in accordance with the mandate defined by the governance vote. The deployment of the allocated capital and execution of associated strategies will follow the approved framework.