Journalist
Posted:
- Daily trading costs on GMX have risen to a new high.
- The total value of GMX V2 has increased by almost 100% in the last two weeks.
Trading fees on GMX, a decentralized exchange (DEX) for perpetual contracts, reached a daily record of $245 million on November 10, according to data from Dune Analytics.
Source: Dune Analytics
This increase in fees came as trading volume on the DEX’s V2 interaction also reached a new milestone, exceeding $280 million on the same day.
The significant increase in trading activity on GMX on November 10 pushed the cumulative trading volume within the protocol to a daily high of almost $150 billion, information from the same data provider showed.
The recent growth in trading activity on GMX is driven by the continued general rally in the values of crypto assets and traders’ increasing desire to speculate on the future prices of these assets without owning them.
At the time of writing, the global cryptocurrency market cap was $1.45 trillion, growing 34% in the past month, according to data from Coin gecko.
During the same period, Bitcoin was the leading crypto asset [BTC] and ether [ETH] also saw their values increase by 37% and 31%.
Since more than half of the crypto assets on the market share a statistically significant positive correlation with these coins, their prices have also increased.
GMX V2 is the winner
The month so far has been marked by a lot of trading activity on GMX V2. Over the past two weeks, the protocol’s total value locked (TVL) has increased by 81%.
For context, as of November 1, GMX V2’s TVL was $91 million. At the time of writing, this figure was $164 million DefiLlama.
In the first 11 days of this month, fees received from GMX V2 users have reached $258,000, surpassing September’s total revenue by 36% and on track to surpass October’s $367,000.
Source: DefiLlama
The protocol’s governance token GMX has benefited from the recent market price surge and increase in trading activity on the decentralized exchange. At the time of writing, it was trading at $52.54 and the token’s price has risen more than 45% in the past month.
The token’s Accumulation Distribution Line (ADL), observed on a 24-hour price chart, confirms the price uptrend and has also risen steadily over the past month.
The ADL measures the underlying supply and demand of an asset, and does this by determining whether traders are actually buying or selling the asset. During periods of strong up or down trend, the ADL moves in the same direction as the price, confirming the current trend.
At the time of writing, this indicator stood at -607,048, the highest level since October 2022.
Source: GMX/USDT on TradingView
