Key Points:
The more than $5 million in transaction fees earned by GMX over the weekend have been added to the platform fees totaling $120 million since September 2021.
GMX is a utility and governance token that earns 30% of the platform’s fees, while GLP is a liquidity provider (LP) token that earns the remaining 70%.
Over the weekend, DEX exchange GMX surpassed Ethereum to become the largest revenue-generating DeFi platform in the DeFi industry.
According to CryptoFees data, the more than $5 million in transaction fees earned by GMX over the weekend have been added to the total platform fees of $120 million gathered since September 2021, indicating rising fundamental strength. This is is the incremental token for the project’s native coin.
Fees are split between two project tokens, GMX and GLP. GMX is a utility and governance token that earns 30% of the platform’s fees, while GLP is a liquidity provider (LP) token that earns the remaining 70%. Smart contracts are used by DeFi products to provide customers with industry-leading financial services like leveraged trading and lending. On the GMX side, users may trade futures and financial derivatives of different tokens on the DEX offering with leverage up to 50 times the initial collateral.
Since the dYdX frenzy in 2022, with 466 billion USD transacted on the platform, GMX has emerged as a significant rival to dYdX, while also assisting the derivatives market achieve huge traction. More specifically, the platform features like reduced slippage, low fees, and protection against unwanted liquidations have all contributed to DEX’s appeal. As of February 13, the project has amassed over $500 million in crypto assets, with $455 million on Arbitrum and the remainder on Avalanche.
Overall, the rapid spike in transaction costs on GMX is due in part to a number of notable people in the crypto Twitter community, such as Mechanism Capital founder Andrew Kang, closing long positions in Bitcoin and Ethereum on GMX.
However, leveraging the same huge holdings to acquire the confidence of the companion crypto “sharks” has partially proved the usefulness that GMX delivers to consumers. On the other hand, such a large platform push charge is evidence that the latest investor game in the futures market has begun to heat up more than it did during the late 2022 collapse.
Individual traders aren’t the only ones who are enthusiastic about derivatives; a growing number of institutions are as well. The President and CEO of the renowned Chicago Mercantile Exchange (CME) recently announced that institutional demand for crypto futures products is once again exhibiting signals of substantial development.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Chubbi
Coincu News
