Analysis of GMX: Decentralized Perpetual Cryptocurrency Exchange with AMM Trading
Crypto News – GMX, a decentralized exchange (DEX) catering to perpetual cryptocurrency trading with leverage of up to 50X, employs an Automated Market Maker (AMM) system instead of the conventional order book. This unique setup operates on the Arbitrum and Avalanche blockchains, interconnected through a cross-chain bridge. The ecosystem thrives on two key tokens: GLP and GMX. Users can contribute liquidity by minting GLP and subsequently receive 70% of the generated fees.
Remarkably, GMX has recorded an impressive trading volume of $130 billion, accumulating total fees amounting to $220.5 million. This DEX boasts a substantial user base, with approximately 195,669 individuals participating within the protocol, as verified by data from Dune Analytics. Furthermore, the DEX has experienced a notable surge in the total open interest over the recent months.
At present, GMX’s market capitalization stands at $329 million, positioning it as the 92nd largest entity in the cryptocurrency landscape. In the last 24 hours, the asset price volume has surged by 10%. However, the volume-to-market cap ratio implies a feeble recovery in the price.
An evaluation of the weekly technical chart reveals a significant 17% decline in GMX, indicating a prominent bearish influence. Meanwhile, on the daily chart, the asset price is exhibiting a fragile recovery, hovering around the $37 mark. The upward trajectory of GMX could encounter resistance around the $45 mark, while a potential rebound is anticipated around the $30 level in a downward scenario. Presently, GMX’s trading position is positioned beneath the 50 and 100 Daily Moving Averages, possibly acting as a transient barrier for future price movements.
With a Relative Strength Index (RSI) value of approximately 25, GMX is situated within the oversold zone. This suggests the asset’s potential for a bullish turnaround, albeit weakly.
The GMX token’s price has recently stumbled, prompting speculation about an impending robust recovery. The Total Value Locked (TVL) in the protocol has seen a dip, settling at $492 million from a peak of $700 million. Nonetheless, the user count within the protocol has been progressively increasing over recent months. Multiple analysts are anticipating a robust surge in the asset price in the near future.
Key Technical Levels:
- Major Support: $30
- Major Resistance: $45
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