Connect with us
Active Currencies 14778
Market Cap $2,557,616,555,646.10
Bitcoin Share 51.24%
24h Market Cap Change $0.70

GMX’s network parameters get a new lease of life but problems could arise if…

2min Read

The interest in the derivative exchange could be due to its integration with Chainlink’s low-latency oracles, the proposal for which was unanimously approved by the community members.

GMX's network parameters get a new lease of life but problems could arise if...

Share this article

  • GMX’s trading volume snapped a one-week declining trend to hit $37.67 million on 26 April.
  • Owing to Bitcoin’s flash crash, GMX plunged to $70 for a brief period, but recovered to $73.29 at press time.

GMX has taken giant strides in 2023 to cement itself as the leading decentralized derivative exchange. On a year-to-date (YTD) basis, the total amount locked (TVL) on its smart contracts soared more than 50%, settling at $1.18 billion at press time, data from DeFiLlama showed.


Read GMX’s Price Prediction 2023-24


Infact, the protocol’s TVL reached an all-time high of $1.28 billion on 19 April. Moreover, GMX has contributed generously to the growth of Arbitrum [ARB], occupying more than 36% share of the layer-2 solution’s total TVL.

Source: DeFiLlama

Network parameters record growth

The interest in the DeFi protocol could be due to its integration with Chainlink’s [LINK] low-latency oracles, the proposal for which was unanimously approved by the community members.

The new oracles will give traders access to real-time price data on GMX V2 by cutting down delays significantly. The solution will also help in cutting down transaction settlement time and mitigate front running.

The effect of this high-profile partnership was reflected in GMX’s trading volume which snapped a one-week declining trend to hit $37.67 million. This also marked a whopping 236% gain in the last 24 hours.

Source: DeFiLlama

The sharp growth in volume was driven by an increase in transactional activity on the derivative exchange. The total number of transactions broke past 13k on 26 April. This represented a jump of 56% over the last 24 hours and over 36% over the last week.

Additionally, there was steady growth in the number of new users coming on to the platform over the last week, signifying growing adoption.

Source: DeFiLlama

Incentive to sell GMX increases

Owing to Bitcoin’s [BTC] flash crash on Wednesday, GMX plunged to $70 for a brief period, but recovered to $73.29 at the time of writing, data from CoinMarketCap showed.

It should be noted that the token surged 9% following the approval of Chainlink’s proposal. Hence, there were high chances that token could recommence its upward momentum.


Realistic or not, here’s GMX market cap in BTC terms


Data from Santiment further showed that GMX holders on average would realize high profits on their token sales as the MVRV Ratio was 10.73%. The positive value of the MVRV Long/Short Difference indicated that long-term holders would realize higher profits than short-term holders.

This meant that holders could dump their tokens in the near term which could adversely impact GMX’s price.

Source: Santiment

 

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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.