3 Reasons GMX Price Has Rallied 19% – Time To Buy GMX?

The crypto market is showing signs that the effects of the FTX-triggered bear phase are wearing off. One of them is the GMX price, which has gone up by 19% in the last 24 hours. With the latest data showing another 1% uptick, is it time to buy GMX?

What Exactly Is GMX?

GMX is one of the leading decentralized exchanges, or DEX, designed to provide users with perpetual and spot listings. The best part about this platform is it offers up to 30 times leverage to its users. Besides that, the zero price impact trades and fewer swapping fees are always a plus for the platform. 

This decentralized exchange leverages a multi-asset liquidity pool to facilitate all functions. This means everyone providing liquidity will be able to earn fees from trades. These fees are applied to leverage trading, swapping, asset rebalancing, and market making.      

The platform has all the ideal offerings to attract both users and providers. The DEX has recently decided to bring dynamic prices by implementing the Chainlink (LINK) oracle. Besides that, GMX also leverages an aggregate price feed that can reduce the risk of liquidations from any temporary wicks. 

GMX also came up with another announcement on 30th November 2022, stating that it would now also be available on Arbitrum and Avalanche (AVAX) blockchain. 

GMX’s Dual Token System

Most conventional crypto exchanges have just a single native token that facilitates all transactions on the platform. But this is where GMX stands out with its dual token system that includes GMX and GLP. 

The GLP token is the liquidity token of the exchange and is generally used for trading index assets. Investors can use their index assets to mint GLP or even redeem an asset by burning the token. A total of 70% of leverage and swap trading fees are distributed amongst GLP holders. 

On the other hand, the GMX token is the governance and utility token of the platform. The remainder of the 30% fee is distributed to individuals staking on the platform. Avalanche traders will gain AVAX yields, while Arbitrum users will receive rewards in ETH tokens. 

Apart from staking, one also has the liberty to use their GMX holdings to have a say in the platform’s future. These decisions can include anything from increasing the leverage of the token or anything else that affects the future of the GMX exchange.      

GMX Past Price Movements

The price history of GMX has been anything but stable since the token went live on 14th September 2021. Initially priced at $14.99, the token saw an almost immediate rally taking its prices to $40.05 on 30th October. This further resulted in increasing the exchange’s trading volume passing the $50 million mark by the end of October. 

This was followed by another spike on 13th November 2021, with the exchange exceeding the trading volume of $5 billion. GMX then added support for magic internet money (MIM) stablecoin, further increasing its prices to a new all-time high of $217.32. But unfortunately, maintaining this momentum took work for the token, which led to it closing the year at just $21.96.        

At the start of 2022, GMX/AVAX pair and the GMX crypto farm were listed on the Trader Joe’s exchange. This simplified things for people looking to trade between Avalanche and Arbitrum versions of the GMX tokens.    

Following this, GMX started 2022 with a high of $61.35 but fell to $49.04 again. Things deteriorated further in March, with GMX falling to $20.70 but climbing back to $38.26 in April 2022. By June 2022, things went really bad for GMX, with the token reaching a low of $12.65. 

However, the token recovered again in October, reaching $62.19 but fell again to $45.33 by late November following the collapse of FTX. 

As of December 2022, the GMX token holds a valuation of $50.86 with a market cap of $406,329,605 and a 24-hour trading volume of $23,820,077. This is an improvement following the bearish run of the crypto market. 

Rationales Behind The GMX Price Rally

There can be many reasons that contribute to a price rally in the volatile crypto environment. But in the case of GMX, three specific reasons stand out, and these reasons include:

Decentralized Exchange

One of the primary factors fueling the price of the GMX token is the decentralized nature of the exchange. With decentralized exchanges gaining unmatched popularity in recent times, the GMX exchange certainly outshined most competitors, further fueling its rise. 

Arbitrum And Avalanche

The next important factor is GMX being available on Arbitrum and Avalanche blockchains. Traders can now exchange their tokens more easily and at more affordable prices. Now, users need not rely on any intermediary for perpetual trading.    

FTX Collapse

The final factor here is the collapse of the crypto behemoth FTX in November. The collapse of such a significant exchange has left people looking for better alternatives in the market. This increased the demand for GMX tokens, further boosting their prices.   

A Much Better Crypto is About to Turn Up on Multiple Exchanges

There is no denying that the crypto market is volatile. But this GMX price rise also shows that keeping up with market trends and developments can help create a clearer picture. Investing in GMX might not be a bad idea if you are aware of all market trends. 

However, for any discernible investor, it is always better to have more options opened — like IMPT. This green crypto is on the verge of ending the presale and landing on multiple cryptocurrency exchanges. The founders of this project came to this conclusion after the IMPT presale raised more than $15 million within two months, a feat only the best altcoins have managed to achieve in the past.

“We have bought forward our listing to 14th December, initially with Uniswap, LBank and Changelly. We plan to add at least 7 exchanges over the coming months.”, posted IMPT CEO Denis Creighton on the project’s official discord channel.

Early movers better hurry and grab the tokens at the presale by visiting IMPT.io. The listing price of IMPT is 10% more than the presale price. Losing the chance to buy the tokens now would mean letting go of the 10% guaranteed gains.

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