Leading derivatives protocol GMX has reached an impressive $652 million in trading volume in a single day, marking a milestone in its year-to-date trajectory. This astonishing increase strategically aligns with the current rally of Bitcoin and Ethereum, which are both reaching yearly highs.
The V2 iteration of the protocol has excelled by generating $218,000 in daily fees, ranking as the second-highest figure since January. While this achievement is reflected in the increase in GMX’s total value locked (TVL) by 4%, it is crucial to analyze the market context to understand the sustainability of this growth.
In December, the total value of all derivatives contracts traded on GMX amounts to a staggering $1.02 billion. This milestone follows the monthly derivatives volume of $5 billion recorded in November, representing the highest figure since June.
While this indicates an upward trend in trading activity, it is critical to consider the risks associated with such a sharp rise. Investors should cautiously assess market volatility and the possibility of significant corrections.
GMX protocol fees have been on a rollercoaster ride over the past few weeks. With $1.61 million paid in fees by traders in the past week, we see a significant recovery compared to previous months.
However, it should be noted that monthly fees, which exceeded $10 million in November, suggest increased financial pressure on users. This fluctuation raises questions about the sustainability of the revenue model and the possibility of adjustments in the future to keep GMX competitive.
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