GMX Crypto Price Prediction: A Move to $50 Can’t be Ruled Out

The GMX crypto price has done well in the past few days as cryptocurrencies have staged a recovery. It rose to $45, the highest point since December 27. The token has soared by more than 17.20% from the lowest level this year. So, is GMX the next big thing in cryptocurrencies.

What is GMX?

GMX is one of the biggest decentralized exchanges (DEX) in the world. Unlike most other leading exchanges, it is not built on Ethereum. Instead, it exists on Arbitrum, one of the biggest layer 2 platforms in the industry. A small part of its platform exists on Avalanche. Arbitrum and Avalanche are known for their fast speeds and low transaction costs.

GMX has emerged as one of the biggest beneficiaries of the collapse of FTX. At its peak, FTX was known for being a platform of crypto traders. This is different from other exchanges like Coinbase and Gemini.

GMX provides an open source platform where people can trade perpetual futures in an easy way and at lower costs. The network has handled over $93 billion in volume in the past few years. According to CoinMarketCap, GMX handled over $800 million worth of cryptocurrencies in the past 24 hours.

GMX is also one of the most profitable exchanges in the industry. Data compiled by Cryptofees show that GMX generated over $340k in fees in the past 24 hours. This makes it the fourth-biggest cash earner in the crypto industry after Ethereum, Uniswap, amd BNB Smart Chain.

Analysts believe that DEX protocols are the future as centralized exchanges implode. Coinbase laid off over 10% of its workers while other exchanges have seen significant outflows in the past few months. DEXes have the advantage of being open source and safer than centralized exchanges.

GMX price forecast

The four-hour chart shows that the GMX token price has been in a strong bullish trend in the past few days. It has moved above the important resistance point at $43. It has also risen above the 25-day and 50-day moving averages. Also, it has formed an inverted head and shoulders pattern. Therefore, the token will likely continue rising as buyers target the next key resistance point at $50.