DEX token GMX rallies 35% after beating Uniswap on trading fees for the first time

The terms of GMX rallied to its second-highest level successful past connected Dec. 1 arsenic traders assessed the decentralized exchange's quality to germinate arsenic a superior rival to its apical rival Uniswap (UNI).

GMX established an intraday precocious of $54.50 successful a betterment that started connected Nov. 29 from $40.50. Its rally's opening coincided with crypto probe steadfast Delphi Digital's tweet connected the GMX decentralized exchange, arsenic shown below.  

GMX/USD four-hour terms chart. Source: TradingView

GMX beats Uniswap successful fees for the archetypal time

Notably, GMX had earned astir $1.15 cardinal successful regular trading fees connected Nov. 28, which surpassed Uniswap's $1.06 cardinal trading fees connected the aforesaid day.

GMX Flipped Uniswap successful Daily Fees connected Nov. 28. Source: Delphi Digital

This seemingly renewed buying sentiment successful the GMX market, helping its terms rally 35% to $54.50 afterward.

Moreover, GMX besides benefited from the increasing discontent against centralized exchanges successful the aftermath of the FTX collapse. The decentralized exchange's gross roseate by 107% to $5 cardinal successful November, boosted by a 128% summation successful annualized trading measurement and a 31% emergence successful regular progressive users.

GMX exchange's fiscal data. Source: Token Terminal

In comparison, Uniswap's annualized gross accrued by astir 75% and regular progressive users by 8%. 

Independent marketplace expert Zen noted that GMX's outperformance could person stemmed from its token holders receiving a bully information of each trading fees — astir 30%, according to GMX's authoritative declaration.

On the different hand, the holders of Uniswap's autochthonal token UNI bash not person shares from the platform's trading fees.

"[GMX is] an evident bargain and clasp during this carnivore market," Zen added, saying that it is "consistently the 2nd highest earning protocol aft Uniswap." Excerpts:

"Leverage trading becomes ascendant during carnivore markets. FTX and Bybit grew a batch past time. Expecting [a] akin communicative here. No large FDV overhang."

GMX terms technicals tilt bearish

From a method investigation perspective, GMX's ongoing bull tally risks exhaustion successful the coming days. 

Related: FTX’s illness could alteration crypto manufacture governance standards for good

On the regular chart, GMX's terms tests its multi-month ascending trendline absorption for a imaginable pullback, based connected its erstwhile corrections aft investigating the aforesaid trendline. In doing so, the token eyes a diminution toward the ascending trendline support. 

GMX/USD regular terms chart. Source: TradingView

As of Dec. 1, GMX faced an summation successful selling unit adjacent the trendline absorption astatine astir $53. The GMX/USD brace could driblet to the existent trendline enactment adjacent $42, which coincides with its 50-day exponential moving mean (50-day EMA; the reddish wave) and its 0.618 Fib line.

In different words, GMX could driblet by astir 20% from its existent terms levels by the extremity of 2022.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.