- GMX recorded a slight decline in TVL last month.
- However, network activity increased during the same period.
GMX, a leading decentralized exchange (DEX) for perpetual contracts, was ranked as the protocol accepted within the Avalanche Network (AVAX) with the second-highest total value locked (TVL) decline last month, on-chain data firm IntoTheBlock noted in a recent post. I did. At X.
According to the data provider, Kyberswap, GMX, and Abracadabra recorded TVL declines of $1.07 million, $869,000, and $738,000 over the past 30 days.
Latest monthly TVL trends in the Avalanche ecosystem
📈 Top 3 TVL Gainers:
1. Trader-Joe: Impressive growth to $11.39 million. There was a significant increase, reflecting increased activity.
2. Balancer: Acquired $3.04 million from TVL
3. MUX Protocol: Improved TVL by $641K📉 Top 3 TVL losers:
One.… pic.twitter.com/Lss3NVn3Pv
— IntoTheBlock (@intotheblock) November 30, 2023
GMX excelled in other areas as well.
Although the protocol recorded a decline in TVL last month, GMX’s increased user activity during the period led to an increase in trading volume, trading fees, and the revenue earned from them.
AMBCrypto found that trading volume on the DEX totaled $576 million during the period under review. This represents a 19% increase compared to October’s volume of $485 million.
Due to high transaction volume, transaction fees also increased. According to data from DefiLlama, GMX users paid a total of $12 million in DEX usage fees over a 30-day period.
This figure represents a 140% increase compared to $6 million recorded last October. This also represents the highest monthly fee seen on the protocol since June.
Moreover, monthly profits also increased rapidly. In November, GMX recorded $3.6 million in revenue from trading fees paid by users. For context, this is also the highest monthly revenue since June, when it hit $3.5 million.
Source: DefiLlama
GMX’s volatility is lowered
In the past month, the value of the protocol’s native token, GMX, has also increased. According to CoinMarketCapThe altcoin price rose 9% to $51.07 at press time.
Over the past few weeks, price volatility has decreased significantly as Alt’s value has consolidated within a narrow range.
The Bollinger Band readings observed on the daily chart reveal a narrow gap between the upper and lower bands of the indicator.
The narrowing of the gap between the upper and lower bands of the asset Bollinger Band indicator is called a Bollinger Band squeeze. This means that market volatility is decreasing.
Likewise, the token’s Average True Range (ATR), which measures market volatility by calculating the average range between high and low prices over a specific period, has been trending downward since November 18.
Realistic or not, GMX’s market cap based on ARB is:
When this indicator falls, it means that the price of an asset is less volatile and is more likely to stay within a certain range.
At press time, GMX’s ATR was 2.67.
Source: GMX/USDT on TradingView