DEX token GMX rallies 35% after beating Uniswap on trading fees for the first time
The price of GMX rallied to its second-highest level in history on Dec. 1 as traders assessed the decentralized exchange’s ability to evolve as a serious competitor to its top rival Uniswap.
GMX established an intraday high of $54.50 in a recovery that started on Nov. 29 from $40.50. Its rally’s beginning coincided with crypto research firm Delphi Digital’s tweet on the GMX decentralized exchange, as shown below.
Notably, GMX earned about $1.15 million in daily trading fees on Nov. 28, which surpassed Uniswap’s $1.06 million in trading fees on the same day.
This seemingly renewed buying sentiment in the GMX market, helping its price rally 35% to $54.50 afterward.
Moreover, GMX also benefited from the growing discontent against centralized exchanges in the wake of the FTX collapse. The decentralized exchange’s revenue rose by 107% to $5 million in November, boosted by a 128% increase in annualized trading volume and a 31% rise in daily active users.
In comparison, Uniswap’s annualized revenue increased by about 75% and daily active users by 8%.
Independent market analyst Zen noted that GMX’s outperformance could have stemmed from its tokenholders receiving a good portion of all trading fees — about 30%, according to GMX’s official declaration.
On the other hand, holders of Uniswap’s native token, UNI, do not receive shares from the platform’s trading fees.
“[GMX is] an obvious buy and hold during this bear market,” Zen added, saying that it is “consistently the second highest earning protocol after Uniswap.” An excerpt:
From a technical analysis perspective, GMX’s ongoing bull run risks exhaustion in the coming days.
Related: FTX’s collapse could change crypto industry governance standards for good
On the daily chart, GMX’s
Read more on cointelegraph.com
