Arbitrum’s [ARB] inception is posing a threat to investors’ interest in GMX?

ambcrypto.com:

Lookonchain’s data revealed a transaction on 25 March, which seemed concerning for GMX. As per the tweet, a whale exchanged all of its GMX for Arbitrum [ARB]. The whale had earlier bought more than 12,000 GMX with 300 Ethereum [ETH] and then exchanged those for 6,65,947 ARB. 

The whale bought 12,445 $GMX(($927K currently) with 300 $ETH($498K) at a price of $40.

Then bought 665,947 $ARB with the 12,445 $GMX, and the buying price is $1.39.https://t.co/QsNQVOMfeB pic.twitter.com/13ZzGAzOLx

— Lookonchain (@lookonchain) March 25, 2023

Is ARB’s inception posing a threat to GMX’s popularity among whales and, by extension, among investors?

Read GMX’s Price Prediction 2023-24

A look at GMX’s key metrics gave reasons for concern. For instance, Token Terminal’s data pointed out that the network’s daily active addresses registered a decline, suggesting decreased usage.

This was further proven by taking a look at the blockchain’s decline in revenue since 10 March. Surprisingly, while GMX ’s active users declined, the opposite happened with ARB, which witnessed a surge in both new and active users lately.

Source: Token Terminal

It was interesting to note that though the network’s TVL remained high, its growth seemed to have stopped as the chart moved sideways for quite some time.

Nonetheless, the good news was that the GMX top 50 holders’ accumulation chart continued to grow, showing whales’ interest was unaffected. 

Source: Dune

A look at the blockchain’s on-chain metrics helps to better understand the ground reality. The network growth declined sharply over the last few days, suggesting fewer new addresses were used to transfer the token.