Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

GMX incorporation of Chainlink’s low-latency oracles is not guarantee of…

2min Read

Users who trade on the GMX perpetual exchange may have the chance to access better market data. Although the protocol’s TVL increased, adoption has decreased.

GMX incorporation of Chainlink's low-latency oracles is not guarantee of…

Share this article

  • GMX took a step towards enhancing the user experience on its V2 amid a decrease in development activity.
  • Besides offering security, the integration would help create a fee structure on the derivatives exchange.

Decentralized margin trading platform GMX has secured the integration of Chainlink [LINK] low-latency oracles after its community approved the proposal.

The integration, hailed as a positive development, for the project would help in support of swaps and liquidity on the GMX V2.


Realistic of GMX’s market cap in LINK’s terms


A look at the voting results showed that 96.28 of those involved in the process agreed to the project to confirm the motion. 3.72% were not in support.

According to the press release published by PR Newswire, the collaboration has the potential to improve the experience of GMX users in the DeFi economy.

Of the discourse to supply safety

Recently, Chainlink released the new low-latency oracles to address the pain of DeFi applications, including derivatives exchange by providing data security. Following the disclosure, the Total Value Locked (TVL) continued its year-long increase.

The TVL measures the health of a protocol, as well as investors’ interest in smart contracts applications listed under the project. At $665.46 million, the hike implied that user confidence in GMX was high. Hence, the basis for the growth.

GMX Total Value Locked (TVL)

Source: DeFiLlama

However, the GMX ecosystem state was not an all-around cheer. According to Santiment, the project’s development activity took a sharp dip on 24 April. The development activity metric measures developers’ commitment to implementing upgrades within a project.

So, the decline means GMX was lagging in terms of public GitHub repositories. Another metric in a similar state as the development activity was the active addresses.

Extension is not adoption

Active addresses show the number of unique deposits and addresses that have participated in transactions within a network. At the time of writing, the seven-day active addresses were 11,000. This suggested that the speculation around the token did not have investors rushing in their droves. 

GMX active addresses and development activity

Source: Santiment


Is your portfolio green? Check the GMX Profit Calculator


In addition, it remained uncertain how quickly the implications of the Chainlink integration will begin to reflect. But the GMX team confirmed that the partnership was for the long term.

GMX had gained the crypto community’s attention since it operated on the Arbitrum [ARB] network. However, besides Chainlink, it also expanded into Avalanche [AVAX]. Reacting to the development, a core contributor of GMX mentioned the community was elated about the endorsement.

Johann Eid, Chainlink Labs Vice President of integrations also commented, on the matter which could result in the establishment of a GMX V2 fee structure. Eid said,

“With this collaboration, we mark a new milestone for the space and its race towards mass adoption. The low-latency oracles will bring the industry one step closer to the performance level that currently exists outside of it”

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.