Key Takeaways
The decentralized futures platform GMX has seen a rise in use following the collapse of FTX.
Last week, GMX registered a brand new all-time every day excessive buying and selling quantity of $1.17 billion.
Other decentralized buying and selling platforms, such because the Polygon-based Gains Network, have additionally elevated in recognition.
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GMX buying and selling quantity has hit an all-time every day excessive of $1.17 billion within the wake of FTX’s collapse.
GMX Trading Volume Soars
Crypto merchants are turning to DeFi following FTX’s implosion.
The decentralized futures buying and selling platform GMX has soared in recognition 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 good contracts quite than taking custody of customers’ belongings.
Over the previous week, buying and selling quantity on GMX has registered a brand new every day excessive of $1.17 billion, per Dune information compiled by @saulius. The variety of every day customers additionally considerably elevated, leaping to the very best degree since June. The elevated buying and selling quantity places GMX in competition 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 information.
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. Despite the present weak spot within the crypto market, GMX is barely 28% off its all-time excessive of $62.10 recorded in January. Bitcoin, in the meantime, is down 75% from its peak.
In addition to the surge in customers and buying and selling quantity, GMX’s revenues have additionally soared. According to Crypto Fees information, the protocol has averaged $1.04 million in every day income over the previous seven days. It’s presently the third most worthwhile crypto challenge behind Ethereum and Uniswap.
GMX lets customers open lengthy or quick positions on Bitcoin, Ethereum, Chainlink, and Uniswap with up to 30 instances 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 recognition for the reason that FTX collapse. Gains Network, a decentralized leveraged buying and selling platform on Polygon, has additionally seen its every day customers and buying and selling volumes soar. Gains Network’s GNS token has subsequently obtained a lift, leaping 50% from its weekly low.
Last week’s FTX implosion has as soon as once more highlighted the chance of trusting centralized entities to custody crypto belongings. Given the choice, it seems that many merchants are migrating over to decentralized options—moreso as fears that different centralized exchanges similar to Crypto.com and Gate.io can also be going through liquidity points do the rounds in crypto circles. Only time will inform if decentralized buying and selling can win in the long term. But in the intervening time, protocols like GMX are having fun with the limelight.
Disclosure: At the time of penning this piece, the creator owned ETH and several other different crypto belongings.
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