- GMX has managed to accumulate significant revenue due to high activity on the network
- Avalanche benefits from the traction brought on by GMX and other DeFi dApps, however, fails to attract users to its NFTs
GMX, a popular perp DEX on Avalanche has been gaining massive popularity over the last month. For context, perpetual decentralized exchanges (Perp DEXs) are decentralized platforms where users can trade perpetual contracts. Perpetual contracts are derivative products that allows traders to speculate on the price movement of an underlying asset without owning the asset itself. These contracts have no expiration date and can be held indefinitely.
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According to recent data, GMX is ranked second in terms of revenue generated by a perp over the last month. The GMX protocol managed to acquire $4.1 million in terms of revenue over this period. For the most part, the revenue generated by the protocol could be attributed to the growing activity across the protocol.
In fact, based on the data shared by GMX’s website, there are now over 300,084 users on the protocol
Source: GMX
The large number of users being attracted to GMX could positively impact Avalanche in the future. Not only can GMX’s progress bring more users to the Avalanche network, but the success of the protocol can also help Avalanche generate more revenue.
Over the last week alone, the number of active users on the Avalanche protocol surged by 15.1%. During the same period, the fees generated on the protocol saw a spike of 15.1%. If GMX continues to perform positively, Avalanche could see further improvements in fees and activity in the long run.
Source: token terminal
Even though Avalanche has made progress in the DeFi sector due to dApps such as GMX, the same couldn’t be said about its NFT sector.
According to data shared by AVAXNFTSTATS, the number of NFT sales on the Avalanche network fell materially by 12.5% over the past week. Additionally, the number of Avalanche NFTs being minted on the protocol also fell over the same timeframe.
Source: AVAXNFTSTATS
Despite the lack of interest shown in Avalanche’s NFT ecosystem, investors have continued to buy AVAX, Avalanche network’s native token. Over the last 24 hours, AVAX’s price appreciated by 1.9%. Along with its price, AVAX’s volume noted a spike as well.
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Additionally, the development activity on the network also grew significantly. Growing development activity on Avalanche highlighted that there could be new updates coming to the network, updates that can attract more users and people to the network and AVAX.
Source: Santiment