GMX is leading the altcoin charge this morning in an unusually bullish way. The digital currency is trading at a 9.36% surge over the past 24 hours and by more than 21% in the trailing seven-day period. The GMX upsurge is coming at a time when the majority of altcoins are moving in a bearish tandem with Bitcoin (BTC), which is trading at a marginal loss of 1.52%.
GMX is designed as a decentralized spot and perpetual exchange that supports low swap fees and zero-price impact trades. GMX supports broad multi-asset pools that offer rewards to liquidity providers. As a DEX platform with relative stability, GMX is winning hearts and minds amid the growing turmoil in the banking ecosystem.
With the collapse of Silvergate and Signature Banks, two mega financial institutions that bankrolled the crypto ecosystem, investors and traders alike have been tagging DeFi as an alternative to maintain revenue generation through yield farming and liquidity provision.
Though there is competition in the space, GMX is currently carving out a niche for itself, and this is reflected in the current embrace of its native token.
Beating reward expectations
One major hallmark of a perpetual futures exchange like GMX is its ability to deliver on its promises with respect to the use of rewards and distribution. In one of its latest updates on its official Twitter account, GMX said that more than $7.6 million have been collected in rewards over the past seven days.
With the distribution of these rewards, more than $6.5 million in Arbitrum (ARB) was collected and more than $1 million in Avalanche (AVAX). A small amount of GMX was also paid out to users. This lends credence to the sustainability of the liquidity provision niche in DeFi and has largely enhanced sentiment around the protocol and its native token.