On this article, we are going to focus on GMX, a decentralized perpetual buying and selling DEX that permits as much as 50x leverage on numerous cryptocurrencies similar to BTC, ETH, and lots of different altcoins.

This platform has change into very well-known within the DeFi world in a brief time frame due to its fascinating options that permit it to function in a quite simple and environment friendly method within the crypto market.

GMX presently boasts a TVL of $500 million and cumulative buying and selling quantity of $200 billion since its inception.

Let's discover out extra under.

GMX: The most well-liked decentralized perpetual crypto buying and selling DEX within the DeFi world

GMX is a decentralized DEX that permits spot and perpetual buying and selling with as much as 50x leverage It helps a variety of cryptocurrencies together with BTC, ETH, SOL, DOGE, LINK, BNB, ARB, AVAX, NEAR, and many others.

Right here customers can act as liquidity suppliers by merely connecting to non-custodial wallets to trade on-chain property or lock collateral for transactions and earn transaction charges.

Initially born as Gambit Finance by nameless founders and launched on the BNB chain, it was later renamed GMX. Launching on Ethereum Layer 2 Arbitrum In September 2021.

It has now been prolonged to Avalanche and has change into extremely popular in DeFi, particularly amongst customers on the lookout for an environment friendly and high-performance decentralized platform.

The numbers converse for themselves. As of Could 6, 2024, GMX's previous 7-day quantity is $1.25 billion, cumulative quantity is $199 billion, TVL is $436 million, and cumulative payment assortment is $308 million. .

From a technical perspective, GMX launched a brand new manner to consider decentralized buying and selling on DEXs.

To start with, as a substitute of selecting the basic structure of a DEX with twin token swimming pools; GMX makes use of a single liquidity pool consisting of fifty% stablecoins (USDC, USDT, DAI, FRAX) The remaining 50% is numerous tokens similar to ETH and BTC.

Each person who trades on the platform attracts from this pool of crypto assets. In it, the worth of particular person cash is protected by the value feed of Chainlink oracles, which ensures the accuracy and reliability of the information.

Such a multi-asset pool is community-owned and is also called a GLP. By locking cash in GMX, LP suppliers obtain a corresponding quantity of GLP tokens representing their share of the supplied liquidity.

The protocol will then robotically stake the newly issued GLP tokens.

Those that present liquidity to decentralized buying and selling DEXs will obtain 70% of the buying and selling charges within the type of esGMX tokens (a useful resource that ensures the identical rewards as GMX) and ETH or AVAX relying on the community, with the remaining charges remaining within the highlight. Price it. 30% will probably be given to stakers on the platform.

It is extremely essential to emphasise that simplicity, intuitiveness, and immediacy of operation are the hallmarks of GMX, making the protocol usable all through the DeFi group, even amongst inexperienced customers. Moreover, merchants profit from: Zero worth influence, very low buying and selling charges in comparison with business common.

GMX Crypto: On-chain evaluation

The newly launched decentralized buying and selling DEX consists of governance crypto has the identical title because the platform, specifically GMX.

GMX token holders can take part in discussions about venture growth by voting on governance proposals by way of their affect shares.

However on the identical time, cryptocurrencies may: Fastened to stake to reap the benefits of excessive yields. Specifically, GMX stakers obtain three sorts of rewards. Multiplier factors (factors that reward long-term holders), GMX deposited as collateral, and relying on the unique chain he’s rewarded in ETH or AVAX.

You’ll be able to earn further commissions by way of multiplier factors earned at 100% annual price in comparison with your deposit quantity.

Nonetheless, in the mean time, by way of worth, the GMX token is buying and selling at a drawdown of about 70% in comparison with its excessive worth in April 2023, so it can’t be stated to be doing properly.

It may be noticed that within the final 10 weekly candlesticks of the GMX-USDT buying and selling pair, 9 of them are bearish whereas only one is indicating a bearish inexperienced.

Weaknesses of GMX token; it has efficiently weathered the bear market completely and managed to face out from all different cryptocurrencies. That is primarily as a result of market entry of decentralized perpetual DEX competitor Hyperliquid.

This contemporary platform has grown considerably in latest months, pushed by the development of potential airdrops of its personal tokens, and has managed to seize a few of GMX's market share.

Think about that initially of this yr, GMX had a market share of round 18%, however on the finish of April, it solely recorded a 3.5% share.

It’s also value noting that some historic buyers within the GMX venture and token have just lately dumped all their “baggage” and liquidated their crypto holdings.

Notably, Arthur Hayes, a widely known crypto billionaire and founding father of BitMEx, held tens of thousands and thousands of {dollars} in GMX till a couple of months in the past, however in early April he offered the entire tokens he owned. Emphasize the circumstances behind the sale.

Roughly 237,674 GMX models have been offered since April eighth. That is undoubtedly having a unfavorable influence on the asset's worth actions.