- The total value of GMX locked up has increased by 35% since the collapse of FTX.
- The protocol’s native token has seen a jump in price and trading volume in recent days.
According to a tweet from an on-chain analyst, one of the largest decentralized derivatives exchanges GMX has hit a new all-time high (ATH) in its total value (TVL), underscoring its continued dominance in the DeFi landscape.
GMX TVL makes a new all-time high almost daily. pic.twitter.com/eHlBRlB7an
— Patrick | Dynamo DeFi (@Dynamo_Patrick) February 18, 2023
At the time of writing, the TVL of the Arbitrum-based protocol has reached $624 million, gaining 20% in the last week and 35% since the FTX broadcast hit the cryptocurrency market.
Is your portfolio green? Check out the GMX Profit Calculator
The era of decentralized staking
The growing interest in GMX could be linked to US regulators stepping up central staking offerings. Consider this- GMX recorded an ATH in its trading fees and revenue on February 10, the day Kraken halted all staking activity on its exchange following a reprimand from the US Securities and Exchange Commission (SEC).
GMX’s staking solution guarantees a 30% share of trading commissions generated to users who lock their GMX tokens.
Liquidity providers (LPs), on the other hand, cut trading fees by 70%. The profitability of this staking policy is proven by the increasing number of daily active users and the volume of transactions of the protocol, recovered by the Token Terminal.
The native token absorbs the profits
Steady growth in key metrics resulted in more action on the contracts front as well. At the time of writing, GMX has recorded gains of more than 25% in the past week, while its trading volume has more than doubled in the same time, according to data from Token Terminal.
At press time, however, the token was down 1.63% in the 24-hour period, per CoinMarketCap.
How much is 1,10,100 GMX worth today?
According to Santiment, daily active addresses increased by 36% in the past week, adding to the token’s bullish narrative. The 30-day MVRV ratio was on the higher side, indicating that most holders would make a profit if they were to sell their GMX tokens.
Investors should take this metric with a grain of salt, as it had the potential to exert significant selling pressure in the coming days.
Weighted sentiment was positive, which meant investors were pinning their hopes on GMX’s viability.