The GMX token, which powers the GMX decentralized exchange for trading perpetual cryptocurrency futures, has experienced a significant decline of around 6.5% in the past 24 hours, making it the worst-performing cryptocurrency among the top 100 by market capitalization, according to CoinGecko.
The GMX/USD pair dropped to just above $50 per token, falling below its 50-Day Moving Average (DMA) of $53 and losing its grip on its 21 DMA of $56 earlier in the week. This decline marks the lowest levels for GMX in over a month, with the cryptocurrency now 18% lower than its previous highs of around $62. The reason behind this decline is not clear, but data from DeFi Llama shows a decrease in trade value locked (TVL) in GMX’s smart contracts.
The falling TVL suggests that the protocol is struggling to retain crypto capital. Analysts predict that GMX could see a further decline to around $41, a decrease of 20% from current levels. However, high yields offered to liquidity providers who mint the protocol’s token, GLP, could attract DeFi investors looking for higher returns. GLP comes with risks as its price is tied to the net profits of leveraged traders on the GMX platform.
In other news, investors looking for alternative options can consider meme coins, such as Burn Kenny Coin, which recently launched its presale and has already sold $440,000 worth of tokens. The token is expected to see explosive growth when it launches on decentralized exchanges due to pent-up demand and a low market cap. However, investors should be aware of the high-risk nature of meme coins and consider diversifying their holdings with more established cryptocurrencies like bitcoin and ether.