The protocol’s ability to maintain its value despite the precipitous drop in the bitcoin market this year has made it a popular choice. The total locked value (TVL) of GMX has steadily increased and currently stands at a record $455 million, according to cryptocurrency data source DefiLlama, while the TVL of other decentralized finance protocols has declined. Token holders on the GMX exchange get 30% of all transaction fees.
On Wednesday, Binance and FTX, two of the world’s most popular cryptocurrency exchanges, announced that they would begin trading the GMX decentralized exchange token.
Betting on GMX tokens earns 30% of the protocol’s revenue, which is distributed to token holders.
The cryptocurrency market price for GMX increased from approximately $40 to a high of $60, marking the highest price for the asset since January, when it reached $62. Since then, however, the token has lost some of its recent gains and is now trading around $48,500. CoinGecko statistics reveal that trading volume increased to $150 million in the last 24 hours, roughly 20 times the previous day.
The token’s recent rise is not entirely unexpected. In the last day alone, it has been traded on many major exchanges, including Binance, FTX, Crypto.com, and Bitget. Asset values are known to rise after being listed, and the GMX token exemplifies this trend well.
GMX’s rise is not solely due to being listed on large exchanges
GMX was a token that was little talked about in the industry until recently. Today is the first time it is has been in the limelight. It is possible that the listings have given it a second chance at life. In any case, the rise of GMX seems to be more than that.
Using GMX smart contracts, traders can buy and sell tokens on the platform’s decentralized marketplace. While the total value locked in for competing DeFi protocols has declined in recent months, GMX’s TVL has steadily increased. As can be seen in the graph below, the curve has only been increasing since about mid-June, and has already reached as high as $460,000,000 at its peak.
This DeFi protocol was successful even before it was listed. Take, for example, the revenue issue. Recent tweets from Delphi Digital revealed that GMX was included in the top 10 list on October 3. In the last 180 days, it has generated more money than competing protocols such as SushiSwap and Synthetix.
The growing earnings show that more and more people are using the GMX platform.
In parallel, GMX has found a comfortable place for itself in the decentralized perpetual market. The co-founder of the global cryptoasset platform Xangle recently tweeted more details and comparisons with dYdX:
For some time now, GMX has been the clear runner-up in the decentralized perpetual market for some time now. Users in this niche are hooked on GMX for a number of reasons, not the least of which are the incentives offered to token holders. The price of the asset has risen as a result.
Betting on GMX tokens earns 30% of the protocol’s revenue, which is distributed to token holders. Strong price resilience was shown as a result of the core value of the asset, despite the current negative market.
The rise in the value of the token over the previous day has been remarkable. However, looking at the bigger picture, it is clear that GMX is not fundamentally experiencing a purely marketing-induced rebound, as the token has risen about 583% from its June lows to yesterday’s high. Fundamentally, it is in a great position in the market.
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