GMX buying and selling quantity has hit an all-time day by day excessive of $1.17 billion within the wake of FTX’s collapse.
GMX Buying and selling Quantity Soars
Crypto merchants are turning to DeFi following FTX’s implosion.
The decentralized futures buying and selling platform GMX has soared in reputation over the previous week due in no small half to the lack of belief in centralized exchanges. The DeFi protocol facilitates trustless leveraged buying and selling utilizing sensible contracts quite than taking custody of customers’ property.
Over the previous week, buying and selling quantity on GMX has registered a brand new day by day excessive of $1.17 billion, per Dune knowledge compiled by @saulius. The variety of day by day customers additionally considerably elevated, leaping to the best degree since June. The elevated buying and selling quantity places GMX in rivalry with many established centralized exchanges. For instance, over the previous 24 hours, the U.S.-based Kraken change has dealt with $737 million value of transactions, whereas centralized futures change Bybit has seen simply over $800 million in quantity, per CoinGecko knowledge.
The GMX protocol’s governance token has reacted positively to the rise in use. It’s up over 67% for the reason that market crashed on November 10. Regardless of the present weak spot within the crypto market, GMX is simply 28% off its all-time excessive of $62.10 recorded in January. Bitcoin, in the meantime, is down 75% from its peak.
Along with the surge in customers and buying and selling quantity, GMX’s revenues have additionally soared. In line with Crypto Charges knowledge, the protocol has averaged $1.04 million in day by day income over the previous seven days. It’s at the moment the third most worthwhile crypto challenge behind Ethereum and Uniswap.
GMX lets customers open lengthy or brief positions on Bitcoin, Ethereum, Chainlink, and Uniswap with as much as 30 occasions leverage. Positions are collateralized by liquidity suppliers who earn buying and selling and liquidation charges from merchants. The protocol lives on the Ethereum Layer 2 community Arbitrum and Avalanche.
GMX is certainly one of many decentralized buying and selling platforms to see a rise in reputation for the reason that FTX collapse. Beneficial properties Community, a decentralized leveraged buying and selling platform on Polygon, has additionally seen its day by day customers and buying and selling volumes soar. Beneficial properties Community’s GNS token has subsequently obtained a lift, leaping 50% from its weekly low.
Final week’s FTX implosion has as soon as once more highlighted the danger of trusting centralized entities to custody crypto property. Given the choice, it seems that many merchants are migrating over to decentralized options—moreso as fears that different centralized exchanges reminiscent of Crypto.com and Gate.io might also be going through liquidity points do the rounds in crypto circles. Solely time will inform if decentralized buying and selling can win in the long term. However in the interim, protocols like GMX are having fun with the limelight.
Disclosure: On the time of penning this piece, the writer owned ETH and a number of other different crypto property.