Forbes Advisor, a global platform for finance related news, advice and inputs, has listed GMX token, the governance token for the GMX decentralized exchange, as one of the best cryptocurrencies to watch out for in 2023.
Forbes Advisor has compiled a list of some of the best digital assets that may experience positive gains this year. Among several tokens on the list, GMX token stands out as the GMX ecosystem has consistently racked up its position among the top five applications and blockchains for most daily fees generated.
Despite the brutal drawdown of the crypto industry in 2022, GMX has performed fairly well as one of the best decentralized finance (DeFI) projects, rising over 2X. In addition, the GMX token has deflationary tokenomics and a scarce asset supply, which means that the price could rise significantly over time.
$GMX mentionned as top crypto to watch in 2023 in Worldwide Business Magazine @Forbes https://t.co/L0Q9QM8ogY
— Appodial 🫐 (@APP0D14L) January 26, 2023
Why will GMX Surge in the Comind Days?
According to the official blogpost, GMX is well-positioned to continue performing well into 2023 as users can trade a variety of cryptocurrencies with minimal fees and quick transaction times on the DEX. It is worth noting that last year GMX earned a whopping $1.15 million in trading fees, surpassing Uniswap’s $1.06 million.
According to data source, Token Terminal, GMX earned more than $15 million in trading fees in just four weeks, becoming the fifth-largest decentralized application. Sam Martin, Senior Analyst at Blockworks Research, explained,
“Unlike most crypto assets that were down 70-90% from 2022 to 2023, GMX ended higher on the year as a result of fee revenue distribution and users seeking alternative venues for leverage in lieu of the FTX collapse.”
It seems a primary reason for GMX’s impressive performance is that the GMX token holders receive 30% of all the trading fees. In November, it had distributed nearly $4.7 million to the token holders in a time span of 30 days, which is the fourth-largest payout among all decentralized applications.
The perpetual DEX has also recently achieved the top decentralized application (dApp) on Arbitrum by TVL and the leading perpetual exchange in decentralized finance (DeFi). In December 2022, the total trading volume had exceeded $80 billion. According to CoinMarketCap, GMX is up more than 14% over the past seven days.
Battle of DEXs
Decentralized perpetual exchanges like dYdX and GMX have witnessed an upswing after the collapse of major centralized exchange, FTX. For the uninitiated, perpetuals are futures contracts that don’t have an expiration date allowing traders to hold their long as well as short positions as long as they like.
Recently, CryptoCompare, a cryptocurrency market data provider, claimed there will be further growth in decentralized derivatives and perpetual exchanges this year. The data provider noted,
“The rise of GMX has been fascinating to watch in the second half of 2022. Since then, several newer derivatives exchanges have launched including Gains Network and Perpetual Protocol, and will be competing with GMX to take the throne off dYdX, which is currently the largest decentralized derivatives exchange. These exchanges have seen an increase in user base since the collapse of FTX
