GMX Analysis & Market Overview

Sypool Protocol
5 min readDec 7, 2023

1. Project Overview

GMX is a decentralized spot and perpetual exchange that supports low swap fees and zero-price impact trades. Trading is supported by a unique multi-asset pool that earns fees from market making, swap fees, and leverage trading for liquidity providers.

2. Fundamental Analysis

The total supply is 9,694,217 tokens, with a circulating supply is 9,252,848 tokens, accounting for 95.45% of circulation.

The 24-hour trading volume represents 3.55%, which is considered moderate.

3. Token Information

4. Ownership Distribution

Data from Arbiscan and OK link reveals that the top 30 addresses hold a significant amount of 93.88%, with the amount of the top 1 address accounting for 65.7%. The top two addresses are RANK1 (0x908c4d94d34924765f1edc22a1dd098397c59dd4) and Synapse network (9.52%), which consist of 75.22% in total. This indicates that the first two holders occupy a dominant position in GMX tokens.

The two largest transactions in the 24 hours were Trader Joe V2.1 and Bybit. Withdraw, Hot Wallet, where the former increased its position by 10.84% to 34,853.51 tokens. The latter reduced its position by -18.32% to 17,351.23 tokens.

5. Major Holders

Address:# Rank1

From the transaction frequency and method of the Rank1 address, this address is likely to be a smart contract specifically used to stake GMX. There are multiple staking records in a short period, and the recent transfers in are greater than the transfers out. This shows that GMX is making good progress in its staking business.

Address:# Rank2:

The tokens traded by Rank 2 are traded in small amounts over several days, with the most recent transaction being on December 4, when 66.89 tokens were withdrawn.

The assets of Rank 2 are composed of several tokens, the largest of which is the GMX token, which represents a value of $50,136,283.09.

6. Position Distribution

2022&2023 Position Distribution

From the distribution chart, we can see that GMX is currently close to the accumulation area in 2023. If it can break through this area upward, the next accumulation area will be at 68.

7. Contract Data

Coinglass long/short ratio

Real-time Long/Short Ratio (24h)

Coinglass reports a real-time long/short ratio of 1.053 in 24 hours, and the trend shows volatility, indicating a balanced market sentiment with no clear bullish or bearish tendencies.

GMX Contract Trading on Binance

Binance is currently the largest platform for OP contract trading.

The long/short ratio leans towards the bullish side.

8. Recent News Highlights

  1. The Arbitrum DAO accepted GMX’s proposal under the S.T.I.P. program. As a result, 12 million $ARB tokens will be used as incentives to support the joint growth of GMX V2 and the Arbitrum DeFi ecosystem. On Wednesday, 8 November, the incentive program kicks off.

9. Summary

1. From the ownership distribution, we can see that excluding the stake contract, the concentration of GMX is dispersed. Whale trading is more active, but the possibility of a large amount of selling pressure in a short period is small.

2. Based on STIP, the Arbitrum ecosystem is active. Under this influence, as the largest DEX, GMX will be incentivized, which can also be proved from the Staking contract.

3. The current price level of GMX is close to the previous high and also close to the largest accumulation area in 2023, and a correction may occur. If this level is broken later, the next level is at 68.

Disclaimer:

This analysis is provided for informational purposes only and should not be construed as financial advice or a recommendation to buy, sell, or hold any cryptocurrency or investment product. Cryptocurrency markets are highly volatile, and the value of tokens can fluctuate significantly in a short period.

Investors should conduct thorough research and consider their risk tolerance before making any investment decisions. The information presented in this report is based on available data and market trends, and subsequent developments may impact the analysis.

The analysis relies on data from various sources, including blockchain explorers, exchanges, and news outlets. While efforts have been made to ensure the accuracy of the information, there may be unforeseen risks or events not accounted for in this report.

It is crucial to note that past performance is not indicative of future results, and the cryptocurrency market is subject to regulatory changes, technological developments, and macroeconomic factors that can influence prices and market dynamics.

Readers are encouraged to consult with financial professionals and conduct independent research before making any investment decisions. The author and Sypool disclaim any liability for financial losses or damages arising from the use of this analysis or reliance on its content.

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