GMX is luring investors with its decentralized exchange in the wake of the collapse of the centralized FTX exchange (CEX). It provides 30 times leverage and affordable fees.
Following FTX's bankruptcy, a flood of investors has turned away from centralized services, which has boosted GMX's recent performance.
By Q4 2022, the value of GMX, which outperformed the majority of the market last year, had doubled. On January 10, 2023, GMX has a $369 million market cap, placing it 82nd overall among cryptocurrencies. On the other hand, as of January 11th, it had decreased by 18.2% during the preceding 30 days.
Our objective is to provide the most detailed description of GMX. So you can decide about investment in GMX easily. Happy reading!
What is GMX?
GMX is a DEX that offers consumers up to 30 times leverage and offers spot and everlasting listings. GMX crypto is it's token. Its inexpensive exchange fees and "zero price effect deals" are its primary selling factors.
Decentralized finance (DeFi) and cryptocurrency exchange are the two main factors that help cryptocurrencies behave the way they do. The idea behind DeFi is that people do not necessarily require banks to access financial services or even just to store their money. Cryptocurrencies can be purchased, sold, and exchanged on cryptocurrency exchanges. You can obtain a loan from many sources, either with or without collateral. They make it possible for users to send money rapidly and affordably across international borders.
GMX is one of the platforms that push complexity to a new level. With this system, the idea of the crypto exchange will be combined with cutting-edge decentralized finance.
Spot trading is available for a select group of popular cryptocurrencies and stablecoins, including ETH, WBTC, LINK, UNI, DAI, USDC, USDT, and FRAX.
GMX Product Offerings
- Swaps may be carried out at market value as established by oracles. There are limited orders available.
- Fees vary based on the asset mix of GLP and range from 0.2% to 0.8%.
- Uses GLP to implement a shared liquidity mechanism (more details below).
- On their favorite pair, traders can go long or short.
- Leverage varies from 1.1 to 30.5 times.
- It is possible to place market, limit, take-profit, and stop-loss orders.
- Position opening/closing at 0.1% fees.
The liquidity provider (LP) token, abbreviated GLP, consists of an asset index whose target component weights fluctuate in response to net perp positioning.
able to be minted with or burned to redeem any asset that makes up an index.
To achieve target component weights, dynamic GLP swap fee pricing for the component assets is used. The P&L against the net position of all perp traders will be borne by GLP holders because they serve as the sole counterparty to all perp traders.
The governance token for the exchange, GMX, can be staked to get 30% of platform fees in esGMX, Multiplier Points, ETH (for Arbitrum stakers), AVAX (for stakers on Avalanche)
esGMX - Like GMX, esGMX can be staked for rewards. GMX tokens may be vested over a year.
Multiplier Points - It is possible to compound prizes for ETH or AVAX. perhaps earning future bonuses.
There are two unique functional tokens in the GMX system:
GMX Token for governance
The network's utility and governance token, GMX, enables stakers to receive 30% of the fees accrued across the whole platform.
It is accessible on Arbitrum and Avalanche, and Synapse Protocol can be used to bridge it. Users have the option to stake their GMX on Arbitrum or Avalanche and receive one of three types of rewards:
- Escrowed GMX (esGMX),
- ETH transaction fees (Arbitrum), and
- AVAX transaction fees (Avalanche)
GLP Token for trading liquidity
The GLP Token, the protocol's native liquidity provider token, functions as an automatic weekly rebalancing index of the large-cap assets currently supported by the GMX protocol, which include ETH, BTC, LINK, UNI, USDC, USDT, DAI, MIM, and FRAX.
This asset can be staked to gradually receive esGMX and ETH rewards in addition to acting as an index of the assets that are present within the GMX multi-asset pool system. Notably, 70% of GMX's accumulated fees go to GLP stakes.
How GMX Exchange Works
Although GMX isn't the first decentralized derivatives market, it does have several distinctive features that other initiatives do not. This market's token is known as GMX crypto.
The GLP pool, a community-run "unionized" liquidity pool, is the main component of GMX. An index called GLP is utilized to supply liquidity for leveraged trading. Leverage makes it simple for GLP holders to profit when traders lose, and the reverse is also true.
Trades on GMX have no impact on prices, and fees are split into two categories:
- 0.1% of the position size as a trading fee is required to open a trade.
- Borrow fee = (assets borrowed)/(total assets in the pool) * 0.01% per hour.
This borrow fee varies depending on how the asset is used; it is lower for less utilized assets and greater for utilized assets.
The holders of GMX and GLP tokens are equally shared among all platform fees. 30% goes to GMX investors, while 70% goes to GLP owners or liquidity providers.
GLP: The Liquidity Providers' token
GLP is used to provide traders with liquidity.
You can purchase GLP tokens with any asset in the liquidity pool, including USDC, WETH, WBTC, DAI, and others. The cost varies according to the liquidity pool's contents. With index assets that are in high demand but underrepresented in the pool, GLP may be purchased for less money. Avalanche and GLP on Arbitrum are two distinct tokens. They cannot be bridged since they have different compositions, pricing, and characteristics.
The GMX Token
The GMX ecosystem's governance token is called GMX.
Maximum supply is anticipated to reach 13.25 million (but could be increased). Currently, there are 8.2 million tokens in circulation, 85% of which are staked.
Three sorts of rewards are earned by staking GMX tokens:
- Escrowed GMX (esGMX tokens), which are issued as liquidity rewards and vest over time
- ETH and AVAX APR are variable and are based on the 30% of fees from leveraged trading
- APR multipliers that increase and promote long-term staking
GMX Crypto - Tokenomics
The protocol's governance and utility token is $GMX. The estimated maximum quantity of $GMX tokens is 13.25 million, while this number may rise if additional products go on sale and liquidity mining becomes necessary. But before any modifications, a governance vote will be held on it.
The 13.25 million $GMX tokens will be distributed as follows:
- 6 million GMX from the XVIX and Gambit migration.
- 2 million GMX paired with ETH for liquidity on Uniswap.
- 2 million GMX reserved for vesting from Escrowed GMX rewards.
- 2 million GMX tokens to be managed by the floor price fund.
- 1 million GMX tokens are reserved for marketing, partnerships, and community developers.
- 250,000 GMX tokens were distributed to the team linearly over 2 years.
The largest share of the tokens (45.3%) was allocated for the migration of XVIX and GMT (Gambit) token holders. The original assets (XVIX, XLGE, and GMT) were exchanged throughout the migration process for $GMX at a rate of 1 $GMX = $2.
The Floor Price Fund is a unique feature of the $GMX token. This fund grows in two ways and is priced in $ETH and $GLP.
- The protocol owns and provides GMX/ETH liquidity; commissions from this trading pair will be converted to GLP and placed in the floor price fund.
- The floor price fund receives 50% of the money generated through Olympus bonds, while marketing is given the remaining 50%.
The floor price fund gives individuals who staked $GMX a consistent flow of $ETH payouts while also assisting in maintaining GLP's liquidity.
If the ratio of the floor price fund to the total supply of GMX is smaller than the market price of $GMX, the floor price fund can be used to buy back and burn GMX as it expands. In terms of $ETH and $GLP, this results in a minimal floor price for $GMX.
How to Use GMX
A strong Web3 substitute for centralized exchanges is the GMX exchange. Supplying liquidity for market-making enables you to trade and make money.
- Leveraged trading
All you need is a wallet; there is no account or registration process!
With zero price effect trades and a user-friendly interface, GMX may be a wonderful alternative to a centralized exchange for those who have a degen itch.
The leveraged trading experience on Arbitrum and Avalanche feels quite similar to that on a CEX because of their affordable fees. However, use leverage with caution.
- GMX staked for a yield
You can earn a yield with compounding and increased benefits by staking GMX tokens.
The GMX token, on the other hand, has no backing. Its cost is solely determined by supply and demand. The GMX price in ETH and GLP terms is supported by a floor price fund, though.
Before enhancements, the GMX yield in ETH is around 10%.
- Utilizing the GLP pool to provide liquidity
By exchanging any constituent token for the GLP pool, you can gain a "real yield."
The GLP pool is supported by assets. Leveraged traders produce the yield. However, there is a risk involved: if traders win, GLP holders lose. Degens will typically lose, but a clever whale might discover a way to take advantage of the model.
In ETH, the GLP yield is around 19%. It's not set in stone and will evolve.
Technical analysis - Moving Average of GMX Crypto
All financial markets frequently use moving averages as an indicator. A moving average (MA) in GMX crypto is used to smooth price movement over a specific period. Being a lagging indicator, moving averages are dependent on prior price movement. Simple moving averages (SMA) and exponential moving averages are the two forms of moving averages that are shown in the table below (EMA).
The GMX is presently trading higher above its 200-day simple moving average (SMA). Since November 10, 2022, the 200-day SMA has been indicating BUY for the previous 97 days. Since January 20, 2023, when the price of GMX crossed above the 50-day SMA, this indicator has been indicating BUY for the previous 26 days. On May 11, 2022, 280 days ago, the Bitcoin market saw its most recent Death Cross. The most recent Golden Cross was on August 11, 2022, or 188 days ago.
Our technical indicators predict that the 200-day SMA for the GMX will increase during the coming month and reach $52 by March 18, 2023. By March 18, 2023, the short-term 50-Day SMA for GMX is predicted to reach $75.88.
A common indicator that shows whether a cryptocurrency is oversold (below 30) or overbought (over 70) is the Relative Strength Index (RSI) momentum oscillator (above 70). The RSI reading for the GMX market right now is 64.21, which denotes a neutral posture.
What is GMX - Oscillator And Key Price Level
Oscillators and critical price levels are two additional crucial indications to comprehend what GMX is, in addition to moving averages.
An oscillator is a technical analysis tool that makes high and low bands between two extreme values. It then creates a trend indicator that oscillates between these bounds. Traders utilize the trend indicator to identify short-term overbought or oversold positions.
Key Price Level
Based on the classical pivot point (P1) for today at $ 78.89, the best support levels for the GMX are at $ 67.08, followed by $ 75.63 and $ 70.33. The resistance levels for the GMX are $ 84.19, $ 87.44, and $ 92.74.
GMX Crypto’s Correlation With Other Currencies
A statistical measure known as correlation expresses how linearly related two variables are to one another. It's a typical technique for describing straightforward connections without explicitly stating cause and consequence.
Currency movements of one have a statistically significant weight to influence currency movements of the other when they are favorably connected with GMX. For currencies that have a negative correlation to GMX, a change in GMX would cause them to move oppositely.
Correlation cannot examine the presence or impact of additional factors beyond the two under investigation. It's important to note that correlation cannot explain cause and effect. Curvilinear relationships cannot be adequately described by correlation.
The price of GMX was most closely associated with Dash (DASH), TRON (TRX), GateToken (GT), Klaytn (KLAY), and Fantom (FANTOM) over the previous seven days (FTM). The prices of Casper (CSPR), Rocket Pool (RPL), PancakeSwap (CAKE), NEO (NEO), and Binance Coin were those most negatively connected with it (BNB).
With a value of 0.499, GMX price has a positive correlation with the top 10 coins by market cap, excluding Tether (USDT). With a value of 0.447, it also had a positive correlation with the top 100 coins by market cap, excluding all stablecoins.
Price prediction of GMX Cryptocurrency
Before considering GMX's pricing estimate, most of the important information you need to know has already been discussed. If you are serious about purchasing the coin, now is the time to pay closer attention. Don't forget that these are only predictions. We're all aware of how erratic the cryptocurrency market is. As a result, predictions about prices are always subject to change.
To determine our predictions for GMX's price, we used a variety of computer-based algorithms to analyze several technical indicators. Such as the relative strength index (RSI), moving average (MA), moving average convergence divergence (MACD), Bollinger bands (BB), and average true range (ATR).
The token's recent success has prompted some optimistic GMX cryptocurrency price predictions from forecasters as of the time of writing.
Price Prediction for GMX in 2023
Our analysis indicates that the price of GMX may reach a maximum of $81.85 in December 2023 and a minimum of $38.13 in May 2023. A significant shift in market attitude suggests that GMX will have a turbulent year.
Price Forecast for GMX in 2024
According to our study, 2024 is favorable for GMX. A high of $190.83 and a low of $78.33 are expected for the GMX.
Price Prediction for 2025
Our analysis indicates that the GMX price will largely stabilize in 2025. With a high of $184.24, which was less than 2024's, and a low of $131.33 in April 2025.
Price Forecast for GMX from 2026 to 2030
GMX has a high of $129 and a low of $90, which suggests that it will decline in 2026. A negative year for GMX, 2027 may see a high price of $109.63 and a minimum price of $76.74. According to our calculations, the price should be back close to the record high of $197.32 in 2028, making it a bullish year for GMX.
The price of the GMX seems positive for 2029 after increasing by about twofold from the previous year.
Our calculations indicate that the price of the GMX could fluctuate between $315.97 and $451.39 in 2030.
It's crucial to remember that cryptocurrency markets continue to be incredibly unpredictable. As a result, it is challenging to anticipate a coin or token's price with any degree of accuracy for the foreseeable future. As a result, forecasts made by experts and algorithm-based forecasters occasionally turn out to be inaccurate.
How to buy GMX Crypto
Numerous variables, including location and protocol, are important when purchasing cryptocurrencies. The major cryptocurrency exchanges for trading in GMX stock at the moment are Binance, BingX, OKX, Deepcoin, and Bybit.
Step 1: To find out where and with which currencies you can purchase GMX, visit CoinMarketCap.
CoinMarketCap offers a list of purchasing alternatives for each cryptocurrency (also known as market pairs). Visit CoinMarketCap and look up GMX. Near the price chart, press the "Market" option. The full list of locations where you can buy GMX, along with the currencies you can use to do so, are displayed in this view. You can see the abbreviation for GMX, GMX, and another currency under "Pairs." You can purchase GMX with the second currency. Look for GMX/USD if you want to buy GMX in U.S. dollars.
Step 2: Decide on a platform to buy from.
Platforms vary in terms of security, dependability, and liquidity. Do your research before setting up an account. Every platform has a unique method of operating. Some platforms are very user-friendly, while others are not.
Step 3: Choose the currency to buy GMX
In general, buying cryptocurrency with a fiat currency like the US dollar will be simpler than doing it with another cryptocurrency. If you must use another cryptocurrency to buy GMX, you must first build a cryptocurrency wallet that accepts GMX. After that, you will purchase the first currency and use it to purchase GMX on the chosen platform.
Most systems offer instructions. Therefore, the guide can aid you if you're confused. But if they don't, there is a thriving community of cryptocurrency lovers who have probably published guidelines on YouTube, Twitter, and other websites.
Perpetual swaps are similar to futures contracts without expiration in that they can be kept indefinitely. In DeFi, perpetual is used to make predictions about the price movement of cryptocurrencies and requires little initial capital to support highly leveraged positions.
Concerning the GMX project particularly, it offers noncustodial perpetual swap trading with a focus on user-friendly UX. On GMX, traders can quickly execute long and short trades with minimal swap and transaction costs, while liquidity providers (LP) can profit by contributing assets to the multi-asset pool system used by the protocol to facilitate leveraged trading and swaps.
Numerous rivals in the DeFi market also provide perpetual futures. The threat of centralized exchanges, which will always have a fraction of the market, is there at the same time.
So what distinguishes GMX?
GMX is positioned itself to be a leader in these derivatives product-providing market as a result of its distinctive value proposition for two key reasons:
- Strong value accrual is made to holders of the GMX token and liquidity providers in ETH.
- A non-inflationary tokenomics approach: The GMX liquidity model (GLP) does not call for inflationary token incentives (such as farm and dump schemes).
- Should You Invest in GMX or Not?
The token is outperforming the majority of the cryptocurrency market as of January 10, 2023. But its price history has shown to be unpredictable, with frequent large swings.
You'll have to decide for yourself whether you should invest in GMX. However, you must first perform your own study before moving on. Because prices can go up as well as down, you should never invest more money than you can afford to lose.
- What do GMX and GLP tokens mean?
70% of all fees are collected using GMX tokens, which are also utilized for governance. Liquidity providers pay the remaining 70% of costs with GLP tokens.
- What is GMX? Who is the owner of GMX?
Owners of GMX tokens own the community-owned, eternal exchange. There are no confirmed outside investors, and the GMX staff is entirely anonymous.
- What exchanges sell GMX tokens?
On one of the cryptocurrency exchanges that mentioned it, you may purchase GMX. You can use Zerion switch to compare GMX prices on Arbitrum and Avalanche.
- How are GMX tokens staked?
On the GMX platform, you can stake GMX tokens to generate swap fees and leverage trading commissions.
- How do I sell GMX cryptocurrency?
On the Arbitrum network, you can sell GMX on decentralized spot exchanges. You can also trade with Zerion's trading aggregation.
- What is the GLP token?
GLP is a token-backed index product for which GMX provides perpetual futures.
- How does the GMX blockchain work?
GMX's perpetual exchange is set up on the Avalanche and Arbitrum networks. 70% of swap fees can be earned by staking GMX. Even modest exchange fees add up to respectable profits when the overall trade volume exceeds $80B.
Trading cryptocurrencies has advanced considerably. Anyone with a crypto wallet can use the transparent, decentralized exchange services provided by GMX. First, its perpetual swap and spot exchange platform is available to traders. Second, by holding GMX tokens, users can take advantage of numerous advantages and participate in governance. The GMX community, as we have learned, controls the platform's future, thus additional services may still be added on top of those the exchange presently provides.