How will Arbitrum [ARB] benefit from GMX’s expanding activity? According to…
- GMX captured a larger part of the perps market.
- ARB’s price declined, along with its velocity.
Arbitrum [ARB] has been seeing a massive surge in activity over the past few months. GMX, one of the most popular DEX’s on the Arbitrum network, gained some headwind from the surge in activity and secured some traction.
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Token Terminal’s data indicated that GMX had 15% of the overall market share at the beginning of April. However, as time passed, GMX was able to 25% of the overall perpetual market share.
The spike in interest for perpetual on the GMX network proved to be beneficial for Arbitrum. According to Artemis’ data, the spike in the number of transactions on the GMX protocol increased. Additionally, the gas fees paid by the network also started to surge.
This rise in activity aided Arbitrum in generating revenue and activity on its own network. Over the last month, the amount of daily active users on the network increased by 89.8%. At present, the cumulative revenue generated on the network has seen a substantial increase, reaching a figure of approximately $2.5 million.
This metric indicated that the overall economic health of the network was improving at press time, and this latest increase was evidence of the fact that there was a significant amount of value being generated through various transactions and activities aside from GMX taking place on the network.
However, despite GMX’s improvements, Arbitrum lagged behind in the DeFi sector. Data from Artemis showcased that the overall DEX volume on the Arbitrum network declined sharply over the last few days. If this trend continues, it could affect the TVL being stored on the Arbitrum network.
At press time, the TVL of Arbitrum was $2.23 billion, according to Artemis’ data.
Realistic or not, here’s ARB’s market cap in BTC’s terms
State of ARB
Coming to the ARB token, the prices continued to decline over the past week. Coupled with that, the velocity of ARB fell, indicating that the frequency with which ARB was being traded had declined.
However, there was a spike in ARB’s network growth observed, which showcased that new addresses were showing interest in ARB at press time.