GMX, the leading platform, experienced an extraordinary increase in fees on June 14, reaching an unprecedented peak of over $20.7 million. This surge can be attributed to significant liquidation events impacting GMX token holders. Through in-depth analysis, it was evident that the fees generated were largely driven by this liquidation activity, marking a new record fee for the platform.
On June 14, the GMX platform saw a significant increase in fees, raising an impressive amount of over $20.7 million, making it the highest figure recorded in recent weeks. This spike in fees propelled GMX to become the second highest fee-earning platform of the day, according to data from Crypto Fees. On that day alone, GMX earned over $3 million in fees, maintaining an average of over $703,000 over the past seven days.
A recent report by WuBlockchain highlighted that the spike in fees was the result of a significant liquidation event on the GMX platform. On June 14, a large number of liquidation transactions took place in GMX’s on-chain derivative agreements, which resulted in an extraordinary net loss of $8.67 million for traders. The fees accumulated during this period amounted to $3.13 million, further emphasizing the important role that liquidation events played in contributing to the platform’s record high fees.
Despite the liquidation event, trading activity on the GMX platform has remained relatively high, as data from CoinGlass shows. The weighted funding level chart shows a sizable trading volume, with a dominant position in the long market. This positive expectation for the token price increase further instills confidence among traders.
On June 14, Open Interest (OI) was close to $10 million, but on June 15, it had slightly decreased to around $9 million. Moreover, GMX’s daily timeframe chart reveals a nearly 4% decline in value on June 14. Currently, the token is continuing its downward trajectory, trading around $44, reflecting a loss of just over 1%.
GMX has entered a strong bearish trend, highlighted by the Relative Strength Index (RSI), which currently places it in the oversold zone. The bearish sentiment around this token reflects the current market sentiment towards GMX.
GMX experienced an unprecedented spike in fees due to a significant liquidation event, resulting in heavy losses for traders. Despite this, the platform continues to witness active trading volume, indicating a positive outlook for the token price going forward.