GMX ranks as the best performing crypto during a devastating bear market

[ad_1]

The GMX token is down only -23% since hitting its all-time high on January 16, making it the best performing cryptocurrency (excluding stablecoins) in this bear market.

What is GMX?

GMX is the utility and governance token of the decentralized GMX spot and perpetual exchange.

Like a DEX, trading on GMX is backed by multi-asset pools, earning fees from liquidity providers through market making, swaps, and leveraged trading.

The token was launched in September 2021 on the Arbitrum One blockchain. Arbitrum is an Ethereum scaling solution using optimistic rollups to speed up transaction times and reduce fees.

In January 2022, GMX also launched an Ethereum-compatible blockchain on Avalanche that uses a modified proof-of-stake mechanism that uses sampled and repeated “gossip” between validators for consensus.

“Just as a single snowflake can become a snowball, a single transaction can eventually turn into an avalanche.”

Token holders can earn through a variety of methods, including staking which can earn up to 30% of all fees generated, locked GMX (esGMX) tokens, and multiplier points.

Since the collapse of FTX, interest in DEXs and self-service wallets has increased. This is likely due to users becoming increasingly wary of centralized exchanges for fear of being blocked, as has been the case with several examples in recent months.

The Biggest Bear Market Gainers and Losers of 2022

The total crypto market capitalization registered an all-time high of $3 trillion in November 2021, marking the peak of the bull cycle. Since then, a bottom came over a year later on November 21, with support found at the $728 billion level.

Peak-to-trough losses amount to $2.272 trillion. As expected, the magnitude of the decline had a significant impact on token prices across the board.

Based on declines from all-time highs, market leader Bitcoin is down 75%.

Similarly, other “blue chip” cryptocurrencies saw significant token price reductions, including Solana losing 95% of its value and Cardano and Polkadot, both down 92%.

The 100 biggest losers were Holo, BitTorrent, and Terra Classic, which, given rounding and their current prices in fractions of a cent, are showing 100% ATH.

While GMX’s -23% price performance is not a metric to brag about, given the scale of the bear market devastation and comparative losses against other tokens, it could be considered a better than expected performance.

Read our latest market report

[ad_2]