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GNS plunges after meteoric start to 2023: Exploring what happened



GNS plunges after meteoric start to 2023: Exploring what happened
Source: Unsplash

  • The daily active users on Gains Network plunged 37% from mid-February until press time.
  • The network almost reversed the TVL gains it made a month ago.

The Open Interest (OI) for Gains Network [GNS] reached its all-time high of 57 million at the time of writing. The OI rose over the past four months for all asset classes.

How much are 1,10,100 GNS worth today?

Interestingly, the OI for crypto currencies grew by 127% since the start of 2023 and accounted for nearly 43% of the total at the time of writing.


Gains into losses?

Gains Network, built on Polygon [MATIC] and Arbitrum, has been one of the most successful decentralized finance (DeFi) protocols in 2023. Its ascent could be gauged by the explosive growth of its trading volume from the beginning of January until mid-February, during which it jumped 34 times, as per Token Terminal.

It reached a monthly high on 16 January when the world’s biggest crypto exchange, Binance, listed its native token GNS on the exchange’s innovation zone. However, the story since then has been uninspiring.

The daily active users on the DeFi protocol plunged 37% as of 2 March, while the trading volume fell by nearly 70% since the listing of GNS on Binance.

Source: Token Terminal

As a result of the dip in trading activity, the protocol’s transaction fees declined sharply over the last week. It slid to the seventh position in the list of top 10 decentralized exchanges in terms of transaction fees collected.

Investors’ sentiment fades

The total value locked (TVL) had a similar story to narrate. After reaching an all-time high on 19 February, the TVL plummeted 12% until press time, data from DeFiLlama showed.

The TVL’s trajectory showed that the network almost reversed the gains it made a month ago.

Source: DeFiLlama

The weighted sentiment GNS tanked since reaching its zenith on 16 February. The social buzz also nosedived, suggesting that there was a lull in overall activity.

Is your portfolio green? Check out the GNS Profit Calculator

Source: Santiment

As per CoinMarketCap, GNS lost 16% of its value over the last week, in sharp contrast to its exponential trajectory seen earlier in the year.

Though the network was going through a bad phase, there were some interesting developments which could give some hope to the GNS community. A yield-bearing algorithmic stablecoin, gmUSD, built on Gains Network, was about to be launched.

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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