- GMX is a decentralized exchange that has been gaining relevance in the market because it allows leverage of up to 50x.
- GMX currently generates more commission than BNB Smart Chain and Bitcoin. In turn, it is the third most active platform in the entire crypto ecosystem.
Since the appearance of cryptocurrencies, traditional economists have focused, in a contemptuous way, on the fact that digital assets only function as speculation, without real uses in daily life. And while this theory is not true, since Bitcoin (BTC) and the rest of the ecosystem have demonstrated different usability, it should also be noted that the first part of the statement contains some truths.
GMX It is one of the trendy decentralized exchanges and this is because it allows leverage of up to 50x. What does it mean? To open a position of $5,000 dollars, it is enough that the trader has only $100 dollars in his trading account (the amount invested must be multiplied by the leverage).
The investor will gain a lot in case of a correct forecast, but also risks being quickly liquidated if he is wrong. This way of investing is not recommended for novices and is extremely “dangerous”.
What is GMX?
This DeFi exchange, which was born in February 2021 and in Twitter It has more than 100,000 followers. it currently generates more commission than BNB Smart Chain and Bitcoin. In turn, it is the third most active platform in the entire crypto ecosystem.
According to the data provided by News BTC, commissions collected by GMX on Thursday, January 19 alone, were in the range of $589,000 dollars, more than harvested in the last week. This is more than the $524,000 of the Binance BNB Smart Chain and even more than the $329,000 of the Bitcoin on-chain.
The only ones that could surpass GMX in those 24 hours were the giants Ethereum and Uniswap, the most important DEX of the most popular blockchain in the world. Both compete in a league of their own as Ethereum fees exceeded $5 million, while Uniswap fees stood at $2.1 million.
At the time of publication of the report G.MX had a total volume of operations of 96,802,651,673, with an open interest, that is, the number of open positions, long and short, of 207,102,720, with more than 208,000 active traders.
It is worth noting that the aforementioned commissions are distributed among the liquidity providers (LP) that collaborate with the decentralized exchange. Those who have invested in BTC-ETH will receive a portion of the platform’s token, which is also called GMX, each time an operation involving these two cryptocurrencies is carried out.
Advantages offered by GMX
GMX It has certain advantages that made it stand out in recent times. ASupports trading some of the most popular currencies such as BTC, ETH and Avalanche (AVAX) without the need to register or enter any personal data.
In addition, GMX operates on the Arbitrum and Avalanche networks, which have much lower fees than Ethereum, the great rival.
Arbitrum is a layer 2 Ethereum blockchain, which has improved scalability and cost of transactions, while Avalanche is a layer 1 network with a lot of potential. It has a much faster settlement time than some of its competition and great processing power. Prices in GMX are based on Chainlink (LINK) oracles.
The GMX token
Unlike the centralized exchange, which saw unusual activity during these days, the price of the native token did not make big jumps: it is currently trading at $46.8 dollars (+3.47% in the last 24 hours). The maximum in the last 7 days was $52.97, with a minimum of $44.67. The ceiling for the year was $62.19, while the floor was $11.49.
The numbers thrown by the decentralized platform are positive and it hopes to position itself as one of the main forces in the next bull run. Away from Ethereum, he wants to distance himself from what the BNB Smart Chain and Bitcoin produce.
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