Journalist
Posted:
- GMX V2 saw a sharp increase in network activity on September 28.
- This was due to the launch of GMX quests a few days earlier.
The V2 version of the popular perpetuals DEX decentralized exchange (DEX) GMX witnessed a notable drop in network activity on September 28.
Is your portfolio green? View the GMX Profit Calculator
As noted in a recent post on X (formerly Twitter), crypto research analyst Flowslikeosmo found that the DEX saw an influx of 8,390 new users and 855 returning users that day.
$GMX V2 is currently experiencing the largest influx of both new and returning users since its initial launch. 🫐
8.39k new users vs. 855 returning users yesterday. pic.twitter.com/UW3rEe7uYM
— Emperor Osmo🧪 (@Flowslikeosmo) September 29, 2023
This represented the highest number of new users and daily active addresses since the second version of the DEX went live on Arbitrum [ARB] on August 6.
GMX V2 beta is live @Arbitrum And @Avax! 🫐
– New assets are available for trading
– Multiple types of collateral can be used
– Higher execution speed and less slip
– Swaps and transactions at low costs
– Insulated swimming pools
– OI balancing and swap incentives1/5 pic.twitter.com/Q8QDdd0686
— GMX 🫐 (@GMX_IO) August 6, 2023
This increase was believed to be a direct result of the recent introduction of GMX quests via the Arbitrum Odyssey campaign just a few days ago.
The new demand for the protocol due to the quests brought the daily number of active traders on GMX V2 to 14,170 on September 29. This marked the daily highest number of unique wallet addresses completing transactions on the platform since its launch in August.
Source: Artemis
GMX V1, on the other hand, only recorded 2,910 active wallet addresses on the same day.
Bulls laugh on GMX
New demand for the protocol’s token over the past week saw its value rise by double digits over that period. At the time of writing, GMX was trading at $38.78, up 12% in the past seven days.
Due to increased demand, the token’s key momentum indicators observed on a daily chart were approaching overbought highs at the time of writing. For example, the Relative Strength Index (RSI) was 73.50. Moreover, the Money Flow Index (MFI) stood at 64.22.
Furthermore, GMX’s Chaikin Money Flow (CMF) was set at 0.23. Above the midline and positive at the time of writing, the token saw capital inflows in the spot market.
How much are 1,10,100 GMXs worth today?
However, the price of GMX traded above the upper band of the Bollinger Bands indicator. Although this showed that buying pressure was increasing, but when the price of an asset trades above the upper band, it indicates that the market is overheating and a pullback is likely.
This is because the price rises above the average price and becomes more volatile.
Source: GMX/USD, TradingView