GMX price prediction: Bullish momentum for the DEX
Content
After the collapse of the centralised FTX exchange, GMX is enticing investors with its decentralised exchange (DEX), which offers low fees and 30 times leverage.
Its native cryptocurrency, GMX, has recently been performing well as a wave of investors move away from centralised services in the wake of FTX’s bankruptcy.
Last year, GMX was outperforming most of the market and had doubled in value by Q4 2022. As of 10 January 2023, GMX had a market cap of $369m, ranking it 82nd out of all cryptocurrencies. Hosever, as of 11 Jamuary it was down 18.2% over the previous 30 days.
What is GMX?
GMX is a DEX that provides spot and perpetual listings while offering users up to 30 times leverage. Its main selling points are its low swapping fees and “zero price impact trades”.
The DEX functions through a multi-asset liquidity pool. Those providing liquidity can earn fees from those trading. These fees are applied to swaps, leverage trading, market making and asset rebalancing.
As well as attracting providers, GMX is hoping its exchange product is enough to bring in users. Along with its low fees, it has implemented the Chainlink (LINK) oracle to bring “dynamic pricing” to the DEX. Its platform also “uses an aggregate price feed which reduces the risk of liquidations from temporary wicks”.
As of 10 January 2023, GMX was also available on the Avalanche (AVAX) and Arbitrum blockchains.
Dual token system
The exchange is powered by a dual token mechanism. The GLP cryptocurrency is the liquidity token, and can be used for trading index assets. Investors can mint GLP by using any index asset, or burn the token to redeem an asset. A total 70% of swap and leverage trading fees are distributed to GLP holders.
The GMX cryptocurrency is the platform’s utility and governance token. The remaining 30% of fees are distributed to those staking the coin. Arbitrum users will receive their rewards in ether (ETH) and Avalanche investors will gain AVAX yield.
As well as staking, investors can utilise their GMX to have a say over the future direction of the DEX. For example, a recently passed proposal increased the exchange’s maximum leverage to 50 times.
GMX’s volatile past performance
GMX to USD price chart
Source: CoinMarketCap
The GMX cryptocurrency has had a volatile history, with plenty of price surges. It went live on 14 September 2021 with an opening price of $14.99 and saw an initial rally until it peaked at $40.05 on 30 October. This came after a rise in the DEX’s TVL, which passed $50m at the end of that month.
TVL of #GMX across @BinanceChain & @Arbitrum has exceeded $50M ! pic.twitter.com/6VCdzrxT79
— GMX ???? (@GMX_IO) 21 October 2021
The cryptocurrency soared even higher the following month. Its trading volume exceeded $5bn on 13 November 2021. It then added support for the magic internet money (MIM) stablecoin on 16 November. The same day, GMX rocketed to its all-time high of $217.32.
GMX was unable to maintain this valuation and it closed the year at $21.96. But it was not long before another breakout.
The token managed to defy the wider bear market at the end of January 2022 after a GMX and AVAX pair was listed on the Trader Joe exchange, along with a GMX crypto farm. The exchange also made it easier to trade between Arbitrum and Avalanche versions of the GMX token that month with the Synapse protocol.
$GMX can be bridged between Arbitrum and Avalanche using @SynapseProtocol pic.twitter.com/toWKLfDGGL
— GMX ???? (@GMX_IO) 10 January 2022
GMX next climbed to a high of $61.35 on 20 January 2022, but closed the day at $49.04. The large price swings continued throughout this year. It fell to a low of $20.70 on 15 March, before climbing back to $38.26, the daily low on 1 April 2022.
It plummeted even further on 18 June as it stooped to an intraday low of $12.65. This mirrored a wider bearish trend in the crypto market.
However, the token showed strong signs of recovery in recent months. It reached a high of $62.19 on 5 October 2022, after its listing on Binance and the community's vote to add the GMX token on the FTX cryptocurrency exchange.
Despite an initial shock to the GMX crypto, the later downfall and bankruptcy of FTX spelled good news for the decentralised exchange. After the FTX blowout, crypto investors migrated en masse away from centralisation. Decentralised exchanges, including GMX, subsequently saw greater trading volume.
On 28 November 2022, Delphi Digital reported that the GMX exchange had earned more than $1m in trading fees, overtaking its rival, the industry giant Uniswap.
After falling to a 90-day low of $25.60 on 9 November with the wider crypto market, the GMX token had a bullish upward trajectory. Trading near its all-time high, on 13 December the token hit $60.06.
However, by 8 January, it was trading at a low of $41.13. After an announcement on Twitter by Arbitrum, congratulating GMX for surpassing $100M on total fees, the token saw a minor rally. At the time of writing, the token is trading at $44.37, up nearly 5% in a recent 24-period.
GMX price prediction round-up
At the time of writing, the token’s recent success has led to some positive GMX crypto price predictions from forecasters.
Wallet Investor said it was a “very good” investment, and its GMX price prediction for 2023 claimed the token could reach $55.96 in a year. The site expected the momentum to continu, predicting that GMX could climb to $113.42 in five years’ time.
DigitalCoinPrice believed the coin could reach an average of $89.37 this year. Its GMX price prediction for 2025 suggested the token could reach an average of $201.23, and then climb to $639.62 in 2030.
TechNewsLeader was even more bullish with its longer-term GMX coin price prediction. While it projected the cryptocurrency migght only reach a maximum price of $274.81 in 2025, it suggested GMX could have risen as high as $1,886.18 by the beginning of the next decade.
PricePrediction also forecasted GMX could have passed the $1,000 barrier by 2031. Before then, it anticipated the coin could climb from $56.60 this year to $130.37 in 2025. Its GMX price prediction for 2030 gave an optimistic value of $812.19, and $1,191.49 in 2031.
When considering a GMX token price prediction, it is important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.
If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns, and never trade with money that you cannot afford to lose.
FAQs
Is GMX a good investment?
GMX is a decentralised exchange that promises low trading fees and up to 30 times leverage. The native GMX token has proved volatile, with massive price swings over the past year, which presents risks to investors.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the GMX token is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.
Keep in mind that past performance is no guarantee of future returns, and never invest any money that you cannot afford to lose.
Will GMX go up or down?
At the time of writing, GMX’s volatility has led to a divided and widely divergent approach from forecasters. Wallet Investor saw it being worth $55.96 in a year’s time, while PricePrediction anticipated an eventual surge past $1,000.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether GMX is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.
Keep in mind that past performance is no guarantee of future returns, and never invest any money that you cannot afford to lose.
Should I invest in GMX?
As of 10 January 2023, the token is outperforming most of the crypto market. But it has demonstrated an unpredictable price history with numerous significant swings.
Whether you should invest in GMX is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research. Never invest more money than you can afford to lose, because prices can go down as well as up
Related reading
