- GMX has the highest TVL in Arbitrum.
- Its native token may see a price drop as buyers start to experience burnout.
Despite the volatility of the decentralized finance (DeFi) market in 2022, GMX, a decentralized exchange for spot and perpetual trading on Arbitrum and Avalanche, has maintained its position as the project with the highest total value locked (TVL) on Arbitrum, according to information from devilama.
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Since its launch in September 2021, GMX usage has steadily increased, driving an increase in the Total Value Locked (TVL). In fact, in the midst of the 2022 bear market frenzy, GMX’s TVL has grown by over 300%.
GMX’s Total Value Locked (TVL) has grown significantly despite the bearish environment plaguing the market in 2022. It is currently Arbitrum’s largest protocol, with $400 million in TVL at the time of writing. pic.twitter.com/WQS4JuPRgZ
– TheBlockResearch (TheBlockRes) January 20, 2023
At the time of writing, GMX’s TVL is valued at $427.72 million, giving it a 37.49% share of Arbitrum Network’s total $1.14 billion TVL.
Likewise, its deployment of Avalanche ranked as the fourth largest TVL project in the series after Aave, Benqi, and Trader Joe’s. Data from DefiLlama showed that so far this year, GMX’s TVL on Arbitrum has grown by 8%.
More users means more money
Since the beginning of the year, GMX has seen a significant rise in the number of users on DEX. for each data from GMX StatisticsThe number of exchange users has increased by 164% since January 1st. The daily number of existing and new users of DEX has been constantly increasing.
Increased user activity has led to an increase in trading volumes on the exchange. At the time of writing, total trading volume on the DEX is $4.25 billion, having risen 9,000% since the start of the year.
In addition, the fees paid for processing transactions in DEX have also increased. Since the beginning of the year, GMX has recorded cumulative transaction fees of $7.98 million.
How much is 1,10,100 GMX worth today?
GMX price performance
At press time, GMX, the utility and governance token for DEX, is trading at $51.20. On an annual basis, its value increased by 23%, data from CoinMarketCap open.
The evaluation of GMX’s performance on the daily chart revealed a steady rise in the accumulation of alternatives. At the time of publication, the major momentum indicators are positioned above their neutral zones in an uptrend. For example, the Relative Strength Index (RSI) is pegged at 60.60. Similarly, GMX’s Money Flow Index (MFI) was seen at 54.55.
Moreover, a look at the swing Directional Movement Index (DMI) confirmed that the buyers are in control of the market. The +DMI line (green) was placed above the DMI line (red). Normally, when the +DMI line is above the -DMI line, it indicates that the strength of the buyers has exceeded the strength of the sellers.
At the time of writing, the Average Directional Index (ADX) for GMX, which is used to measure the strength of a trend in the market, is at 20. When the ADX for an asset is above 25, it indicates that the trend is strong, but if it is less than 25, it indicates that the trend is weak or non-existent. So, with the ADX at 20, the power of the buyers may decrease. As a result, a price drop may be imminent in the GMX market.