GMX incentive program drives 78% jump in V2 TVL

The total value locked on GMX on its V2 data platform has soared to more than $171 million, according to details on DeFiLlama. GMX V2's soaring TVL comes just days after the decentralised spot and perpetual exchange rolled out an Arbitrum (ARB) incentive program.

Timeline of Gmx

An executive from digital assets investment firm Pantera Capital is predicting that GMX and one other decentralized exchange (DEX) altcoin will soon begin to outperform and steal value away from Uniswap (UNI).

GMX launched in early September 2021 as a decentralized perpetual exchange offering swaps and leverage trading and it made a big splash in the DeFi community. If you haven't heard about GMX, let's get you up to speed: GMX's launch on Arbitrum was seen as a major DeFi milestone.

The interest in the derivative exchange could be due to its integration with Chainlink's low-latency oracles, the proposal for which was unanimously approved by the community members.

The native token of the GMX (CRYPTO: GMX) exchange is currently trading at $83.12 and has increased by about 89% since the start of the year, according to CoinGecko. The decentralized derivatives exchange is receiving support from its community for the deployment of its protocol on Base, Coinbase's recently-launched layer 2 blockchain.

Some community members of the decentralized crypto exchange backed the early mover proposal to deploy GMX on Coinbase's L2 blockchain.Concerns were raised over possibly doxxing the protocol's pseudonymous founders as Base could require KYC verification and AML checks.Coinbase recently launched the L2 blockchain Base using Optimism's OP stack to leverage network scalability and tap into Ethereum's mainnet. Community members of decentralized exchange (DEX) GMX echoed support for a proposal to deploy the protocol on the Base blockchain, a layer 2 decentralized network recently launched by major crypto exchange Coinbase.

Just a few days ago, the cryptocurrency market soared at the peak of a banking crisis in the United States. However, it appears the rally has halted as the global cryptocurrency market declined and has reflected in most coin prices.

GMX has been capitalizing on the recent bullish sentiment of the market and has seen quite some growth. One indicator of its progress has been its performance on the Avalanche [AVAX] network.

According to a tweet by an on-chain analyst, one of the largest decentralized derivative exchanges GMX, hit a fresh all-time high (ATH) in its total value locked (TVL), underlining its continued dominance in the DeFi landscape.

BitMEX founder Arthur Hayes has reportedly seen the value of his GMX portfolio balloon by more than $8 million in a matter of months. The blockchain-tracking Twitter account Lookonchain reports that Hayes bought 200,580 GMX between March 3rd and September 7th of last year. He spent 3,386 Ethereum (ETH) worth $5.

Despite the volatility in the decentralized finance (DeFi) market in 2022, GMX, a decentralized exchange for spot and perpetual trading on Arbitrum and Avalanche, has maintained its position as the project with the highest total value locked (TVL) on Arbitrum, according to data from DefiLlama.