GMX: A Rising Star in the DeFi Space | REVIEW 2023

In the DeFi space, GMX, a decentralised spot and perpetual exchange, has seen tremendous growth. We will look deeper into GMX's capabilities, current successes, and future growth prospects in this post.

Overview of GMX

GMX is a decentralized exchange that supports low swap fees and zero price impact trades. It has a multi-asset pool that earns liquidity providers fees from mark making swap fees, leverage trading, and more. GMX recently passed the half a billion dollars TVL (total value locked) milestone, with $502 million across two blockchains:

 Arbitrum and Avalanche. Additionally, it has $351 million in TVL in staking, which means that it is fast approaching $1 billion. This is a significant achievement for a relatively new platform and puts GMX ahead of many other blockchains.

GMX Token Trading

The GMX token is now trading at $50 and has broken into the top 100 cryptocurrencies ranked by Coin Market Cap and Coin Gecko. It has a 24-hour trading volume of $17 million and a market cap of $425 million. The fully diluted valuation (FDV) isn't too far away at $670 million.

The Blueberry Club

The Blueberry Club is a community-driven project for GMX IO products. They built an NFT collection on Arbitrum, and their presence has been good for the longevity and community building of GMX.

GMX's Growing Reputation

GMX has quickly become known as a blue-chip DeFi protocol, with low-carb swap apps, perps trading (derivative and futures exchange), and over $90 billion in traded volume. What's interesting is that you can provide liquidity to GMX by minting GLP (an index of cryptocurrencies that they use for swaps and leverage trading).

The StFX Social 5 Marketplace

The StFX Social 5 Marketplace is an entire layer being built on top of GMX's DeFi application. Traders' trades are routed through GMX, and if this feature is successful, it will bring even more success to GMX.

Umami Finance

Umami Finance is working on a suite of DeFi yield bots, and the first Vault will automate a delta-neutral GLP strategy to hedge against market volatility while collecting GLP yield. This concept of 80/20 vaults allows external LP positions to be used for providing liquidity.

Potential for Growth

GMX's revenue has been impressive in the last few months. In the last couple of months, it has had $8 million, $8 million, $17 million, and $10 million in fees. After that, it's still pulling $2.5 million, $5.2 million, $2.5 million, and almost $3 million in revenue for those months. 

The protocol's profitability is higher than many other cryptocurrencies ranked higher than GMX. This suggests that there is significant potential for growth.

Conclusion

GMX is a rising star in the DeFi space. It has a lot to offer and is already gaining significant traction. Its TVL has passed half a billion dollars, and it has a growing reputation as a blue-chip DeFi protocol. Its revenue has been impressive, and there is significant potential for growth. GMX is certainly a platform to keep an eye on in the future.