GMX, the native token of decentralized perpetual exchange GMX, has gained more than 7% over the past day as the platform continues to benefit from the void created by the collapse of FTX. In fact, the platform earned $1.15 million in trading fees yesterday, surpassing Uniswap’s $1.06 million for the first time ever.
GMX Receives a Boost Following FTX Collapse
GMX is a decentralized futures trading platform that facilitates trustless leveraged trading using smart contracts rather than taking custody of users’ assets. The platform has seen a sharp increase in popularity over the past couple of weeks amid the collapse of FTX.
As reported, FTX filed for Chapter 11 bankruptcy earlier this month after failing to secure emergency funding. The company reportedly has about $10 billion in liabilities. The incident eroded user trust in centralized players and also created a gap in the perpetual market.
Crypto perpetual trading, which was first launched by the cryptocurrency platform BitMEX in 2016, has been recently dominated by Binance and the now-bankrupt FTX. The collapse of FTX and declining trust in centralized exchanges set the stage for decentralized alternatives to attract users.
GMX has been one such platform to benefit from this gap. The perpetual-focused decentralized platform has seen its trading volume spike to record levels. According to a Dune analytics dashboard, GMX registered a new record trading volume of $1.17 billion on 10th November.
Amid the spike in its trading volume, the decentralized exchange has also received a boost in its revenue. According to crypto data aggregator Token Terminal, GMX has earned $4.84 million in revenue over the past 30 days, up by more than 105%.
GMX, which went live on Ethereum layer 2 solution Arbitrum in September 2021, allows users to open long or short positions on Bitcoin, Ethereum, Chainlink, and Uniswap with up to 30 times leverage. Positions are collateralized by liquidity providers who earn trading and liquidation fees from traders.
Decentralized Exchanges Find Popularity Amid FTX Saga
The sudden collapse of FTX, once the third-largest cryptocurrency that had even earned itself a reputation as crypto’s bail-out king during the recent crypto meltdown, has once again highlighted the risk of trusting centralized entities. Therefore, many users are migrating over to decentralized alternatives.
GMX has been one of the decentralized alternatives enjoying the spotlight, but it is not the only one. Gains Network, a decentralized leveraged trading platform on Polygon, has also seen its daily users and trading volumes reach new record levels.
As expected, the GMX project’s native token has reacted positively to the rise in demand. According to data by CoinGecko, the coin is up by more than 10% over the past week and by around 8% over the past 24 hours. Despite the current weakness in the crypto market, GMX is only 28% off its all-time high of $62.10 recorded in January.
Similarly, Gains Network’s GNS token has received a boost. The coin is up by more than 15% over the past week and by more than 4% over the past day. Uniswap, the largest decentralized exchange (or DEX) operating on the Ethereum blockchain, has also registered some gains, increasing by more than 8% over the past week.
This article originally appeared on The Tokenist
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