The GMX token is down only 23% since its all-time high on January 16, making it the best-performing cryptocurrency (excluding stablecoins) in this bear market.
What exactly is GMX?
The decentralized GMX spot and perpetual exchange’s utility and governance token is GMX.
Trading on GMX, as a DEX, is backed by multi-asset pools, with liquidity providers receiving fees from market making, swaps, and leverage trading.
The coin will be available on the Arbitrum One blockchain in September 2021. Arbitrum is a scaling solution for Ethereum that uses optimistic rollups to reduce transaction delays and fees.
In January 2022, GMX also launched on Avalanche — an Ethereum-compatible blockchain that uses a modified Proof-of-Stake mechanism that uses sampled and repeated “gossiping” between validators for consensus.
“Just as a single snowflake can become a snowball, a single transaction can eventually turn into an avalanche.”
Token holders can earn through staking, which can yield up to 30% of all earned fees, escrowed GMX (esGMX) tokens, and Multiplier Points.
Since the demise of FTX, there has been a surge in interest in DEXes and self-custody wallets. This is most likely due to consumers becoming wary of centralized exchanges for fear of being locked out, as has happened in several instances in recent months.
The biggest winners and losers in the bear market of 2022
In November 2021, the overall crypto market cap reached an all-time high of $3 trillion, signaling the end of the bull cycle. Since then, a bottom was identified more than a year later, on Nov. 21, with support at $728 billion.
The peak-to-trough losses total $2.272 trillion. The magnitude of the decrease, as expected, has had a substantial influence on token prices across the board.
Market leader Bitcoin is down 75% when measured against all-time highs.
Similarly, the token prices of other “blue chip” cryptocurrencies have dropped significantly, with Solana losing 95% of its value and Cardano and Polkadot both losing 92%.
The greatest top 100 losers were Holo, BitTorrent, and Terra Classic, which are represented as being 100% down from ATHs despite rounding — and their current prices in fractions of a cent.
While GMX’s -23% price performance is hardly something to brag about, given the magnitude of bear market devastation and relative losses to other tokens, it may be considered a better-than-expected showing.