It’s no secret that the highs and lows of crypto markets continue to keep investors on their toes, with GMX, the governance and utility token that fuels an Arbitrum-based decentralized exchange (DEX) for trading perpetual cryptocurrency futures with leverage, being the latest to keep us on edge. The token has dipped approximately 6.5% in the last 24 hours, earning it the unpleasant title of the poorest-performing cryptocurrency in the top 100 by market cap during this period.
Dropping to just above $50 per token on Friday, GMX fell below its 50-Day Moving Average (DMA) which hovered around $53, after losing its hold on the 21DMA at the beginning of the week. This drop marks GMX’s lowest levels in over a month, now 18% down versus its highs from earlier in the month.
There doesn’t seem to be a concrete new catalyst behind the recent GMX price drop. Nevertheless, DeFi Llama reveals that the protocol’s trade value locked (TVL) in its smart contracts has been on a downward trajectory in recent months. The protocol’s ETH-labelled TVL was last just under 500,000 ETH, a plunge from over 700,000 in February. In USD terms, its TVL was slightly under $1 billion, reduced from over $1.26 billion earlier in the year. These descending TVLs appear to highlight the protocol’s struggle in maintaining crypto capital.
Yet, there may be a ray of hope in the form of high yields offered for liquidity providers who mint the protocol’s liquidity-providing token GLP. This recent tweet from GMX reveals this annual percentage yield (APY) was 12.5% on Arbitrum – substantially higher than most other areas of the Decentralized Finance (DeFi) market.
Nonetheless, with GMX underperforming, traders should continue diversifying their token holdings. For those with a higher appetite for risk and a stronger desire for short-term profits, meme coins may provide an enticing alternative.
One such option is Burn Kenny Coin, a brand-new South Park-themed meme coin that stirred up considerable excitement on its launch day. The project sold an impressive $440,000 worth of $KENNY tokens despite only having been on the market a few hours. With a cap of $500,000 worth of tokens, it doesn’t leave much time for potential investors. Given a mountain of pent-up demand and fear of missing out (FOMO), $KENNY could go through the roof when it debuts on decentralized exchanges early next week.
Before fishing for $KENNY or any other cryptocurrency, potential investors must be aware that crypto is a high-risk asset class and remember to do their due diligence before deciding to take the leap.
Source: Cryptonews
