The GMX price rose to its second-highest level ever on Dec. 1 as traders assessed the decentralized exchange’s ability to evolve as a serious competitor to its main rival Uniswap (UNI).
GMX set an intraday high of $54.50 on a rally that started on Nov. 29 from $40.50. The start of his rally coincided with the Tweet from crypto research firm Delphi Digital on decentralized exchange GMX, as shown below.
GMX surpasses Uniswap in fees for the first time
Notably, GMX had earned around $1.15 million in daily trading fees on November 28, which surpassed Uniswap’s $1.06 million trading fees on the same day.
This seemingly renewed buying sentiment in the GMX market helped drive its price up 35% to $54.50 afterwards.
Furthermore, GMX also benefited from the growing discontent against centralized exchanges in the wake of the FTX crash. Revenue from the decentralized exchange rose 107% to $5 million in November, driven by a 128% increase in annualized trading volume and a 31% increase in daily active users.
By comparison, Uniswap annualized revenue increased 75% and daily active users increased 8%.
Independent market analyst Zen noted that GMX’s outperformance could be due to its token holders receiving a good chunk of all trading fees – around 30%, according to GMX’s official statement.
On the other hand, holders of Uniswap’s native token UNI do not receive parts of the platform’s trading fees.
“[GMX es] an obvious buy and hold during this bear market,” added Zen, saying it is “consistently the second highest earning protocol after Uniswap.” Extracts:
“Leverage trading becomes dominant during bear markets. FTX and Bybit grew a lot last time. Waiting [una] similar story here. There is not a large excess of FDV.”
GMX price technical data leans lower
From a technical analysis perspective, the ongoing GMX bull run risks petering out in the coming days.
On the daily chart, GMX price tests its multi-month uptrend line resistance for a possible pullback, based on its previous corrections after testing the same trend line. By doing so, the token sees a decline towards the support of the rising trend line.
Starting from December 1, the GMX faced increasing selling pressure near the trend line resistance around $53. The GMX/USD pair could fall to the current support of the trend line trending near $42, which coincides with its 50-day exponential moving average (50-day EMA; the red wave) and its 0.618 fibonacci line.
In other words, GMX could drop almost 20% from its current price levels by the end of 2022.
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