Even though GMX’s market dominance is declining, what’s behind the price pump
According to the latest Dune statistics, GMX volumes have fallen from 90% market dominance to 40% since November 10th. In terms of revenue and costs, a decline commensurate with GMX’s market dominance was also observed. According to Token Terminal, GMX fees and revenue have decreased over the last 30 days. This is worrying because it indicates a decrease in GMX utilization.
It should be noted that, despite the decline in revenue, GMX’s network value has remained stable. According to the DeFiLlama chart, GMX’s TVL has been idle for some time, but the good news is that it hasn’t plummeted. However, is a reliable TVL enough to attract additional users to join the network, thereby increasing revenue?
The token price seems to play a role in luring new users, as is optimistic. The price of the token has gained more than 5% in the last seven days, according to CoinMarketCap. The coin is trading at $77.71 at the time of writing, with a market cap of nearly $669 million. This expansion occurred during a period when investor interest in DEX tokens was at an all-time low.
A study of the token’s daily chart reveals several signs the market points to further gains. The Exponential Moving Average (EMA) band, for example, indicates a bullish gain in the market as the 20 day EMA is above the 55 day EMA.
After falling, the GMX’s Relative Strength Index (RSI) reported minor gains and remained above neutral levels, indicating optimism. However, other signs suggest differently. The token Money Flow Index (MFI) and Chaikin Money Flow (CMF) both fell, possibly ending the cryptocurrency’s advance in the near future.
Even if GMX prices continue to rise, concerns remain. According to Terminal Token data, the number of daily active users on GMX dropped dramatically in the previous month. Network revenue may suffer from the reduction.
Sentiment on the token was extremely unfavorable for most of this month, as evidenced by its emotionally weighed down. Coin volumes have decreased, indicating that investors are less interested in trading tokens. Furthermore, GMX’s network growth has slowed, indicating danger.