The price of GMX has been rising since mid-June 2022. The cryptocurrency has increased by more than 283% since June.
- GMX price was $13.26 on June 17 compared to its current price of $50.89.
- GMX coin is the native token of the decentralized exchange GMX.
- The GMX DEX has evolved to be a major competitor to the likes of Uniswap in the wake of FTX’s collapse.
There are no major partnerships involving the GMX coin or any major GMX transactions by whales. As a result, crypto investors must be wondering why the coin has been rising as the majority of cryptocurrencies dived due to the ongoing crypto winter.
So, let’s take a look at the behind-the-scenes that have been pushing the price of GMX up for the past six months.
Why the price of GMX is rising
One of the main factors that have been driving the price of GMX high is considered to be the continuous rise of the decentralized exchange GMX which has now become a serious contender in the decentralized exchanges industry.
After a superb performance over the months, the trading fees collected by the GMX exchange on Monday (Nov. 29) surpassed that of the world’s leading decentralized exchange Uniswap. According to data tracked by Delphi Digital, the trading fees collected by GMX went above Uniswap’s $1.06 for the first time.
Why is the popularity of GMX DEX rising?
GMX exchange, which went live on Ethereum layer 2 system Arbitrum in Sept. 2021 and debuted on Avalanche in early 2022, allows users to trade perpetual using smart contracts without an intermediary. The DEX is most likely benefiting from a broader shift towards perpetual-focused decentralized platforms triggered by the collapse of FTX.
GMX also offers relatively low transaction fees which could also be why investors are flocking to the DEX platform. Also, GMX token holders receive 30% of all the trading fees collected by the exchange.
In the past four weeks, the GMX exchange earned $15.7 million in trading fees becoming the 5th largest decentralized application ahead of major players like AAVE and dYdX. And in the past 30 days, the DEX has distributed about $4.7 million to GMX token holders which is the fourth-largest payout among decentralized applications.