Journalist
Posted:
- The spot and perp exchange has stamped its place as a leader on Arbitrum.
- If GMX continues to deliver new features, this could be bullish price action.
Unless a miracle happens, GMXthe decentralized mockery and perpetual exchange Arbitration [ARB], will remain the leading protocol in the chain. This conclusion is mainly due to the Total Value Locked (TVL).
In a recent article, AMBCrypto explained how Arbitrum’s TVL soared past $2 billion. However, not many knew that the project’s TVL could not reach such heights without the contributions of protocols like GMX.
The trust is in the perpetrators
At the moment of writing, TVL from GMX amounted to $491.55 million, according to DefiLlama analyzed data. This amount was an increase of 11.96% over 30 days. Additionally, the increase means there was a spike in the number of market participants committing capital to GMX as they anticipated better rewards.
Source: DefiLlama
But that’s not where things get interesting. In second and third place respectively were the Uniswap [UNI] And Aaf [AAVE] V3s. However, when you combine the TVLs from these protocols, the addition does not add up to the GMX figures.
Other protocols such as Balancer V2 and Radiant were in fourth and fifth place, while having good marks. AMBCrypto took action to uncover the reasons for the increasing dominance of perpetual exchange.
Details from our research showed that the Arbitrum Short-Term Incentive Program (STIP) discussed here seems to be doing wonders for GMX. Recall that Arbitrum prioritized decentralized perpetual projects during its first round of distribution.
The construction phase is in full swing
So it was no surprise that GMX got some of the money. The big highlight at the time, however, was that the project was awarded the highest share. Although GMX dominates the Arbitrum ecosystem, its token value also held true over the past 30 days.
At the time of writing, GMX’s price was $50.28. This value represented an increase of 16.93% in the last 24 hours. But the last seven days haven’t been the same, with GMX down 3.12%. However, it appeared that the project made good use of Arbitrum’s STIP funds.
Source: Santiment
This assumption was because of his Development activity, as shown above. A closer look at Santiment’s data showed that the development activity metric rose from 0.14 on November 22 to 0.24 at the time of writing.
Realistic or not, here it is The market capitalization of GMX in terms of ARB
The increase in the statistic is proof that the project is committed to delivering new features for users of the exchange. Furthermore, this could potentially be a bullish signal for GMX in the long term.
If the perpetual exchange’s use cases were to attract more users, it could have a positive impact on the price action. For now, we’ll wait and see how things develop.
