GMX Token Stagnates Amidst Ecosystem Volume Decline

The GMX token remained flat on Tuesday, Sept. 24, as most cryptocurrencies continued consolidating, and volume in its ecosystem retreated. GMX was trading at $25.2, slightly above this month’s low of $21.55. It has risen by over 44% from its lowest level this year, bringing its market cap to over $244 million.

Volume Decline in On-Chain Perpetual Futures

GMX, a leading player in the on-chain perpetual futures industry, has seen its volume decline in recent weeks. Data indicates that the exchange handled over $144 million in the last 24 hours and $924 million in the past seven days. GMX has been overtaken by Hyperliquid, which processed futures tokens worth over $7.6 billion during this period. Additionally, decentralized exchanges like dYdX, Satori Finance, Orderly Network, and Jojo have surpassed GMX.

Total Value Locked (TVL) and Market Competition

According to recent analytics, the total value locked (TVL) in GMX across all chains has retreated from over $692 million in 2023 to $440 million. This significant drop highlights the competitive nature of the decentralized finance (DeFi) sector.

Innovative Products and Future Deployments

GMX aims to regain market share by introducing innovative products. Recently, developers launched the kink borrowing model across all markets, boosting available liquidity by 30% to 40%. There is also speculation that GMX will soon deploy on Solana, one of the most popular chains in the industry. The developers are working on enabling GMX staking, allowing users to generate rewards. In July, members voted to introduce more revenue distribution methods within the network.

GMX Solana deployment soon. Strong DeFi revival narrative. Deepest on-chain liquidity Perp DEX. Market volume up = GMX up, history shows.

Transaction Volume Trends

Like other futures networks, GMX has seen its transaction volume retreat in recent months. This volume peaked at $321 billion in March when Bitcoin (BTC) reached a record high of $73,800. The monthly volume in September stands at $291 billion.

Technical Analysis: GMX Token Under Pressure

The GMX token remains under pressure, despite rising by over 40% from its lowest point this year. It has failed to flip the 50-day and 100-day Exponential Moving Averages into support levels. GMX also remains below the 23.6% Fibonacci retracement level, indicating that bears are still in control. Therefore, the GMX token will likely resume its bearish trend and retest this month’s low of $21.68.

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