Despite the fact that the cryptocurrency market is trading in the red, GMX has experienced a rally of more than 10% in the last 24 hours amid concerns regarding the turmoil in the banking sector in the United States.
The fall in stocks in Europe and the banking crisis in the US have caused shock and invoked mass fear among investors and traders around the world. Although the US government took extraordinary measures to stem a potential banking crisis following the historic failures of Silicon Valley Bank (SVB) and Signature Bank, markets were reeling under negative sentiment.
Already in suspense following the bankruptcy of two large US banks last week, Swiss banking giant Credit Suisse recently identified “material weaknesses” on internal controls that dragged its share price down, more than 25%. These fateful banking crises, coupled with macroeconomic headwinds, have dampened market sentiment, contributing to falling cryptocurrency prices.
GMX RACES DESPITE ECONOMIC HEADWINDS
Despite the digital asset sector experiencing another downturn, GMX prices have rallied on both their daily and weekly charts. According to CoinMarketCap, GMX is up 10.36% in the last 24 hours to hover around $81.84. The digital token is up more than 21% in the last seven days, despite the fact that the main tokens continue to fall.
In recent months, GMX has gained exponential traction following the spectacular collapse of Sam Bankman Fried’s FTX. Furthermore, it appears that investors and traders alike have been looking at decentralized finance (DeFi) as an alternative to sustain income generation by cultivating yields and providing liquidity in the wake of the banking crisis threatening further economic turmoil.
GMX is likely gaining a foothold, which is reflected in the current uptake of its native token. In February, he outperformed rival exchange dYdX in terms of total blocked amount (TVL) despite the low trading volume compared to the latter.
GMX RISE AFTER FTX COLLAPSE
According to recent reports, GMX’s TVL has increased substantially and the total value locked in the protocol has gone from $550 million to $648 million in just one week. In one of its latest updates on its official Twitter account, GMX said that more than USD 7.6 million has been raised in rewards in the last seven days.
Weekly Rewards Info ????
$7,648,041.59 collected in the past 7 days
$6,566,297.52 (ARB), $1,025,758.71 (AVAX), $55,985.36 (GMX-ETH)
To buy and stake $GMX / $GLP: pic.twitter.com/KNIV0gCem2
— GMX ???? (@GMX_IO) March 15, 2023
This comes following the perpetual exchange generated fees of almost the sum of $5 million in just over 24 hours, temporarily becoming the top earner in DeFi, earlier this year. The move catapulted GMX ahead of the Ethereum blockchain in daily fees. In January, Forbes Advisor, a global platform for financial news, advice and insights, listed the GMX token as one of the best cryptocurrencies to watch out for in 2023.
