The GMX token supports the GMX decentralized exchange. Although it was one of the few cryptocurrencies to rise throughout 2022, 2023 has been a little less spectacular.
Admittedly, it has risen since the start of the year, but not by as much as the 45% or so that the overall crypto market has.
It went down in late July, but enjoyed a recovery on the morning of August 4. Will that lead to further growth, or is it just a flash in the pan?
CCN reached out to GMX for commentary, but did not receive a reply at the time of publishing.
But what is GMX? How does GMX work? Let’s see what we can find out, and also take a look at some of the GMX Price Predictions that were being made as of August 4 2023.
Decentralized exchanges (DEXes) are crypto exchanges that do not answer to a central authority. This means that people can trade the cryptocurrencies they want to trade, at a price set by the market.
GMX is a DEX with a difference. Founded in 2021 and originally called Gambit Exchange, GMX does not just offer people the change to trade crypto.
The network, which is based on the Avalance (AVAX) blockchain and Arbitrum (ARB) platform also features a futures trading facility. This means people can use leverage – money borrowed to trade – to speculate on what might happen to a crypto.
The GMX token supports the GMX DEX.
GMX uses liquidity pools to help balance its books and enable people to trade. It also utilises the Chainlink (LINK) platform to help set prices. GMX uses an aggregate price feed to protect traders from price spikes.
GMX token holders can vote on changes to the network. They can also set it aside, or stake it, in return for rewards. People can buy, sell, or trade GMX on exchanges.
Because it is based on Avalanche and, via Arbitrum, Ethereum (ETH), GMX is a token, not a coin. You might see references to GMX coin price predictions, but these are wrong.
Now, let’s examine the GMX price history . While we should never take past performance as an indicator of future results, knowing what the token has done can provide us with some very useful context if we want to make or interpret a GMX price prediction.
GMX launched in 2021 and, in September, it was worth about $15. It went up, and a freak spike meant it reached $217.32 on November 16. It soon fell down and it closed the year at $21.96.
2022 was a bad year for crypto, but a good one for GMX. Although it fell to below $15 in June, it was able to make a recovery to end the year at $41.57. An annual increase of nearly 90% would have been good news at any time, but compared to a market that fell more than 60%, GMX was one of the year’s best performers.
GMX has underperformed the market in 2023 so far. Nevertheless, it is still up by nearly 25% since the start of January.
The token reached a high of $90.89 on April 18. It then fell down. The news that the United States Securities and Exchange Commission was suing the Binance and Coinbase crypto exchanges meant it fell to $41.73 on June 12.
It dropped to $48.91 on August 3, but made a small recovery to around $51.55 the following day. At that time, there were 8.9 million GMX in circulation out of a total supply of 9.3 million. This gave the token a market cap of $460 million, making it the 80th-largest crypto by that measurement.
GMX has been on an upturn over the course of the last year or so but has dropped nearly 45% since April 18. Indeed, its current price is down more than 15% since last month’s high. On the other hand, it has recovered almost 25% since its June low.
That said, GMX is still worth more than 7% less than it was before the market crashed on June 5.
With that all said and done, let’s examine some of the GMX price predictions being made on August 4 2023. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.
First, CoinCodex had a short-term GMX price prediction that said the token would fall to $50.07 by August 9 and then recover to $53.23 on September 3. The site’s technical analysis was bearish, with 20 indicators sending discouraging signals and just eight making bullish ones.
In terms of other GMX price predictions for 2023, DigitalCoinPrice said it would reach $103.87. PricePrediction.net thought it would be worth $59.74. Bitnation argued that the token would trade at $77.50 this year.
Bitnation made a GMX price prediction for 2025 that claimed the token would reach $180.84. DigitalCoinPrice was a little behind, saying it would stand at $174.45. PricePrediction.net said GMX would be worth $116.70 in two years time.
Moving on to a more long-term GMX price prediction for 2030, PricePrediction.net said the token would reach $793.28. Bitnation thought it would get to $439.18. DigitalCoinPrice had a GMX price forecast that said it would trade at $531.75 at the start of the next decade.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in GMX.
No one can really tell right now. While the GMX crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Before you decide whether or not to invest in GMX, you will have to do your own research, not only on GMX, but on other, related, coins and tokens such as Osmosis (OSMO) or Uniswap (UNI). Either way, you will also need to make sure that you never invest more money than you can afford to lose.
On August 4 2023, there were 8.9 million GMX in circulation out of a total supply of 9.3 million.
It might do. DigitalCoinPrice thinks it can happen this year, while Bitnation says it will reach three figures next year, and PricePrediction.net suggests it can happen the year after that.
Keep in mind that the only time GMX has been worth more than $100 was on November 16 2021. A freak spike on that day saw GMX reach an all-time high of $217.32.
GMX token holders can vote on changes to the GMX decentralized exchange. People can also buy, sell, and trade GMX on exchanges.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.