Whales Keep GMX Afloat: On-Chain Activity and Price Prediction 2023-2024
• GMX tokens have recently surged due to large whale interest after the FTX collapse.
• The number of unique users signing up to the GMX protocol increased, but the overall fees collected by GMX declined.
• The number of active developers on the network rose, increasing the possibility of new upgrades and updates that could attract more users.
Whale Interest in GMX Tokens
GMX tokens have recently been on the receiving end of massive whale interest after the FTX collapse, resulting in a surge in its prices over the past few months. Data from Santiment suggests that wallets holding 100,000 – 1 million GMX bought about 10 million tokens worth around ~$20 million – and their purchasing power doesn’t appear to be slowing down.
Increase in Users on the Protocol
Data from Dune Analytics showed that there was an increase in unique weekly users signing up to the GMX protocol as well – most likely due to margin trading, swaps or liquidating. However, despite this increase in user activity, fees collected by GMX still declined as fees generated from margin trading fell from $7.65 million to $3.34 million at press time, which also impacted revenue collected by the protocol as it decreased by 24.5%. Additionally, Token Terminal reported a 6.5% decrease in active users on the network as well.
Possibility of Attracting More Users
However, there is some hope for increasing user activity on the platform again – Token Terminal data showed that there was a 22% increase in active developers on the network over the past month which increases chances of new upgrades and updates being added onto the platform that could attract more users and encourage them to stay active as well.
Challenges Faced By Protocol
Despite whales showing interest towards buying GMX tokens, there are still challenges faced by both token holders and protocol alike when it comes to daily activity – with an overall decline in fees collected by GMX and decrease in active users on its platform at press time respectively making it difficult for either party involved with GMX’s token or protocol success .
Conclusion
Gaining whale attention can help boost any asset’s price temporarily while having more developers actively working together can create further opportunities for growth; however if user activity isn’t maintained then ultimately even these efforts may not be enough to keep things running smoothly long-term without other changes being made within its ecosystem first..