- Trading activity on GMX has skyrocketed.
- This was the result of the general market rally in recent days.
Leading on-chain derivatives protocol GMX [GMX] reached a single-day trading volume of $652 million on December 4, the fourth highest trading volume since the beginning of the year, AMBCrypto found.
This increase in trading activity on the protocol coincides with the continued rally of major cryptocurrencies, such as Bitcoin [BTC] and ether [ETH] continue to trade at yearly highs.
Data obtained from Dune Analytics revealed that the V2 iteration of the trading protocol accounted for $260 million of this volume and generated $218,000 in fees for one day.
This was the second highest daily fee generated by GMX V2 since January. The first occurred on November 9, when costs for the protocol totaled $222,000.
Source: Dune Analytics
State of GMX
So far this month, the total value of GMX (TVL) is up 4%. At the time of writing, the protocol’s TVL was $578 million, the highest level since August.
With the increased trading activity over the past week, the value of all derivatives contracts traded on GMX in December totals $1.02 billion.
GMX recorded derivatives volume of $5 billion in November, the highest monthly volume since June DefiLlama.
In terms of protocol fees, GMX has racked up $1.61 million in total fees paid by traders to use the platform over the past week.
The exchange’s monthly fees, which had been on a downward trend since April, recovered in November and ended the 30-day period above $10 million.
Revenue generated from this month’s fees to date is $524,000. In November, GMX achieved monthly sales of $4 million.
The exchange posted its highest monthly revenue in March, when it pocketed $6 million of the $19 million it received in transaction fees.
GMX’s price action
The exchange’s native token GMX has experienced severe price fluctuations over the past month.
Although it has managed to post an increase of 11% during that period, the price growth is likely due to the general bullish sentiments in the crypto market.
For context, new demand for GMX has been on a downward trend since November 18, according to data from Santiment. Since then it has fallen by 55%.
Realistic or not, here it is The market capitalization of GMX in terms of ARB
Likewise, the daily number of unique addresses involved in GMX transactions has fallen over the same period.
At 260 on December 5, GMX’s number of daily active addresses has fallen 30% since November 18. At the time of writing, the altcoin was trading at $52.
Source: Santiment