GMX’s TVL Surges Despite Low Volumes: What’s Next?
• GMX has recently outperformed its competitor dydx in terms of total value locked (TVL)
• The trading volume on the GMX protocol is low, but total value locked and revenue collected continue to increase
• Daily active users on the protocol are declining, raising concern about long-term growth
GMX’s TVL Surges Despite Low Volumes
GMX recently outperformed its competitor dydx in terms of total value locked (TVL). Even though the trading volume on the GMX protocol is low, revenue collected and TVL have been increasing. However, daily active users have been declining, raising concerns about long-term growth.
Low Volume, High Hopes
Despite having low trading volumes, the GMX protocol has seen a significant surge in TVL over the last week. The amount of revenue generated by GMX also increased due to this increase in TVL. However, daily active users have dropped by 13% in the last 24 hours, which could lead to a halt in growth if it continues.
GMX Token Holders Experience Pain
The network growth for GMX has been decreasing as new addresses are not interested in buying its token. Additionally, velocity of GMX has decreased as well as development activity according to Santiments data. This suggests that fewer contributions are being made to the GitHub repository for GMX.
GMX Market Cap In Bitcoin Terms
Even with low volumes and bearish sentiment around the token, GMX’s market cap expressed in bitcoin terms remains optimistic. This shows that despite current conditions investors are still hopeful for future success of this project.
Price Prediction 2023-2024
With such low trading volumes and bearish sentiment around its token it may be hard for GMX to sustain its growth going forward into 2023 and 2024. It will be important for them to monitor their daily active user count closely as well as develop innovative ways to drive more volume onto their platform if they wish to remain competitive with other protocols like dYdX.