- Daily trading fees on GMX have rallied to a new high.
- GMX V2’s total value locked has increased by almost 100% in the last two weeks.
Trading fees on GMX, a decentralized exchange (DEX) for perpetual contracts, reached a daily record high of $245 million on 10th November, according to data from Dune Analytics.
Source: Dune Analytics
This fee surge came as the trading volume on the V2 interaction of the DEX also reached a new milestone, exceeding $280 million on the same day.
The significant uptick in trading activity on GMX on 10th November pushed the cumulative trading volume across the protocol to a daily high of almost $150 billion, information from the same data provider showed.
The recent growth in trading activity on GMX is driven by the ongoing general rally in the values of crypto assets and the increasing desire of traders to speculate on the future prices of these assets without taking ownership of them.
At press time, the global cryptocurrency market capitalization was $1.45 trillion, growing by 34% in the last month, according to data from CoinGecko.
During the same period, leading crypto assets Bitcoin [BTC] and Ethereum [ETH] also saw their values climb by 37% and 31%.
With more than half of the crypto assets in the market sharing a statistically significant positive correlation with these coins, their prices have also been driven up.
GMX V2 is the winner
The month so far has been marked by a lot of trading activity on GMX V2. In the past two weeks, the protocol’s total value locked (TVL) has increased by 81%.
For context, on 1st November, GMX V2’s TVL was $91 million. At press time, it was $164 million, according to data from DefiLlama.
In the first 11 days of this month, fees collected from GMX V2 users have reached $258,000, surpassing September’s total revenue by 36% and on track to surpass October’s $367,000.
Source: DefiLlama
The protocol’s governance token GMX has benefited from the recent price rally in the market and the uptick in trading activity on the decentralized exchange. Trading at $52.54 at press time, the token’s price has gone up by over 45% in the last month.
Confirming the price uptrend, the token’s Accumulation Distribution Line (ADL), observed on a 24-hour price chart, has also steadily climbed in the last month.
The ADL measures the underlying supply and demand of an asset, and it does this by determining whether traders are actually buying or selling the asset. During periods of strong uptrend or downtrend, the ADL moves in the same direction as the price, confirming the current trend.
As of this writing, this indicator was -607,048, its highest since October 2022.
Source: GMX/USDT on TradingView
