Benzinga - The collapse of cryptocurrency exchange FTX (CRYPTO: FTT) and other high-profile crypto firms amid a prolonged crypto winter has piqued users' interest in decentralized exchanges now that there is a gap in the perpetual market.
One of the top performers over the past month has been the native token of the decentralized perpetual exchange GMX (CRYPTO: GMX), which increased by about 26% despite an unfavorable cryptocurrency market, which as a whole decreased by about 20% during the past month, according to data from CoinGecko.
Gains Network, a decentralized leveraged trading platform on Polygon (CRYPTO: MATIC) and Uniswap (CRYPTO: UNI) are some of the other platforms that have benefited from users' exodus to decentralized platforms.
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What Is GMX And Why Is It Popular Right Now?
Users can trade several cryptocurrencies, including Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and other well-known digital assets straight from their crypto wallets using the decentralized futures trading platform GMX.
Contrary to centralized platforms such as Binance (CRYPTO: BNB) and Coinbase (NASDAQ:COIN) Global Inc (NASDAQ: COIN), GMX is non-custodial and does not hold users' money in trust and instead, uses smart contracts to enable trustless leveraged trading.
Due to the collapse of FTX, the platform's popularity has increased during the last several weeks.
The FTX collapse caused millions of retail customers to lose their entire life savings, giving the maxim, "Not your keys, not your coins," a fresh life.
GMX first saw a significant plunge alongside the broader crypto market following the FTX collapse, but demand for the project and native token grew.
GMX swiftly increased from its monthly low of $26.38 on Nov. 10 to a local high of almost $46 on Nov. 14.
For the remainder of November, GMX was able to hold onto its gains, recording a modest price increase while avoiding any significant declines.
The coin is currently down 3.5% over the last 24 hours and trading at $51.52, a modest correction after a stupendous rally.
Notably, on Dec. 1, when traders assessed the decentralized exchange's ability to emerge as a big threat to its primary rival Uniswap, GMX rose to $54.50, its second-highest position in history.
Strong Numbers
With a 128% growth in yearly trading volume and a 31% increase in daily active users, GMX’s revenue increased by 107% to $5 million in November.
In contrast, Uniswap saw an increase in daily active users of 8% and annualized income of nearly 75%.
Similarly, decentralized exchanges have experienced a record-breaking increase in trading volume.
For instance, the yearly trading volume on GMX has increased by 128%, while the number of daily active users has increased by 31%.
Similarly, Uniswap witnessed an 8% increase in daily active users and a roughly 75% increase in yearly revenue.
Additionally, GMX's revenue grew by 107%, hitting $5 million in November. Notably, on Nov. 20, the platform's trading fees set a record of $1.15 million, beating Uniswap's $1.06 million for the first time ever.
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