GMX token, used on Arbirtum DEX for crypto futures, experiences 6.5% decline in 24 hours, becoming the worst-performing top 100 cryptocurrency.
Key Points
- GMX token, used on Arbirtum DEX for crypto futures, down 6.5% in 24 hours, worst in top 100.
- GMX/USD fell below $50, below 50DMA, lost grip on 21DMA, lowest in a month, 18% decrease from highs.
- Falling TVL in GMX’s smart contracts suggests struggles to retain capital, affecting token’s performance.
- Meme coin Burn Kenny Coin gains attention, potential explosive upside for risk-tolerant investors.
The GMX token, which powers GMX, an Arbirtum-based decentralized exchange (DEX) for trading perpetual cryptocurrency futures, has experienced a decline of around 6.5% in the past 24 hours, making it the worst-performing cryptocurrency in the top 100 by market capitalization, according to CoinGecko. The GMX/USD pair fell to just above $50 per token, dropping below its 50-Day Moving Average (DMA) and losing its grip on its 21DMA earlier in the week. This marks the lowest level for GMX in over a month and an 18% decrease from its previous highs around $62.
Weekly Rewards Info 🔹
$2,035,181.20 collected in the past 7 days
$1,819,159.18 (ARB), $216,022.02 (AVAX), $3,263.72 (GMX-ETH)
To buy and stake $GMX / $GLP: https://t.co/ef4TiHI8KE pic.twitter.com/yt1szmOvp1
— GMX 🫐 (@GMX_IO) July 20, 2023
Falling Trade Value Locked suggests Struggles to Hold Crypto Capital
The decline in GMX’s price does not appear to be the result of any specific catalyst. However, a look at DeFi Llama reveals that the trade value locked (TVL) in GMX’s smart contracts has been decreasing in recent months. The protocol’s ETH-denominated TVL is now just under 500,000 ETH, down from over 700,000 in February. Its USD-denominated TVL has also dropped to just under $1 billion, compared to over $1.26 billion earlier this year. This decline in TVL suggests that the protocol is struggling to retain crypto capital, which may explain the recent underperformance of the GMX token.
Price Prediction for GMX: Bears in Control, Possible 20% Downside
The recent decline below the 50DMA confirms that bears are in full control of GMX. With no significant levels of support aside from the late-June lows above $50, there is a high likelihood of a fall back to the June lows in the $41s. This could result in a 20% downside from the current levels. However, one potential saving grace for the GMX protocol is the high yields available to liquidity providers who mint the protocol’s liquidity-providing token, GLP. According to a recent tweet from GMX, the APY for GLP on Arbitrum is currently 12.5%. This high yield may attract DeFi investors searching for greater returns.
While the outlook for GMX may be downbeat, traders should always consider diversifying their token holdings. Bitcoin and ether are considered safe bets, but for investors with a higher risk tolerance and a desire for near-term profits, meme coins could be an interesting option. One meme coin project worth considering is Burn Kenny Coin, a South Park-themed meme coin that recently launched its presale. Despite being only a day old, the project has already sold $440,000 worth of tokens out of the $500,000 available. This meme coin has the potential for explosive upside when it launches on decentralized exchanges (DEXs) early next week. Factors supporting this potential include pent-up demand, limited presale availability, a small market cap, and a commitment to a three-month DEX liquidity lock.
End Point
With the Burn Kenny Coin presale being close to selling out, interested investors should act quickly. By visiting the Burn Kenny website, investors can become followers of the Twitter account and join the Telegram channel to stay informed about the presale end and the imminent DEX launch. To participate in the presale, investors will need Ethereum and can connect their wallets on the website to make their purchases. After the presale, investors can claim their tokens and potentially profit from the expected upside in the value of $KENNY. However, it is crucial to note that investing in cryptocurrencies carries significant risk and investors could lose all of their capital.
