Decentralized exchanges (DEXs) have become increasingly popular in recent months, with perpetual DEXs being particularly interesting to traders. GMX, a decentralized exchange for spot and perpetual contracts, has gained attention from traders due to its efficient trading system and revenue generation for token holders.
According to data from DeFiLlama, GMX hit a new all-time high in user fees on 11 February, surpassing other big players in the landscape, including dYdX. GMX has a total value locked (TVL) of over $1.1 billion and offers trading with up to 50x leverage, making it a popular platform for advanced traders.
GMX has also outpaced its competitors in terms of market capitalization. As of writing, GMX has a market cap of $652 million, higher than dYdX’s $101 million, Vela Exchange’s $24.1 million, and Mummy Finance’s $14.7 million.
The rise in revenue has also been reflected in the price of GMX. At the time of writing, GMX had a price of $76, up 59.4% over the past month. Technical analysis shows bullish signals, with the Relative Strength Index (RSI) suggesting a possible bullish trend, while the Moving Average Convergence Divergence (MACD) also indicates a similar scenario.
Furthermore, the positive sentiment and social buzz surrounding GMX suggest that traders remain bullish on the token.
Notably, GMX is the largest protocol on Arbitrum, a layer-2 solution, and forms the lion’s share of the TVL on the network. One of the main reasons for GMX’s popularity is its efficient trading system.
Unlike some other DEXs that use an automated market maker (AMM), GMX aggregates prices from leading volume exchanges, maintaining trading efficiency while executing market orders.
Additionally, GMX users receive 30% of the total fees generated on the protocol, a feature that has contributed to the rise in revenue for token holders. However, the growth in total value locked on GMX has been steady at best, with no significant growth.
