GMX ranks as the best performing cryptocurrency during the devastating bear market

Haru Invest

The GMX token is down just -23% since hitting its all-time high on Jan. 16, making it the best performing cryptocurrency (excluding stablecoins) in this bear market.

What is GMX?

GMX is the utility and governance token of the GMX decentralized spot and perpetual exchange.

As a DEX, trading on GMX is supported by multi-asset pool, earning commissions from liquidity providers from market making, swaps and leverage trading.

The token launched in September 2021 on Referee One blockchain. Arbitrum is an Ethereum scaling solution that uses optimistic rollups to speed up transaction times and reduce fees.

In January 2022, GMX also launched on Avalanche, an Ethereum-compatible blockchain that uses a modified Proof-of-Stake mechanism that uses sampled and repeated “talk” between validators for consensus.

“Just as a single snowflake can become a snowball, a single transaction can eventually turn into an avalanche.”

Token holders can earn through various methods, including staking which can yield up to 30% of all commissions generated, GMX tokens deposited in escrow (esGMX) and multiplier points.

Since the collapse of FTX, interest in DEXs and self-custody wallets has increased. This is likely due to users growing wary of centralized exchanges for fear of being blocked, as has been the case with multiple examples in recent months.

The biggest bear market winners and losers of 2022

The total market capitalization of cryptocurrencies hit an all-time high of $3 trillion in November 2021, marking the peak of the bull cycle. Since then, the trough came more than a year later on Nov. 21, with support found at the $728 billion level.

Peak-to-trough losses total $2.272 trillion. As expected, the size of the drawdown had a significant impact on token prices across the board.

Based on declines from all-time highs, market leader Bitcoin is down 75%.

Similarly, other “blue chip” cryptocurrencies have seen significant declines in token prices, including Solana which has lost 95% of its value and Cardano and Polkadot, both down 92%.

The top 100 biggest losers were Holo, BitTorrent and Terra Classic, which taking into account rounding and their current prices in fractions of a cent, are shown at 100% cheaper than the ATHs.

While GMX’s -23% price performance is not a metric to brag about, considering the extent of the bear market devastation and the comparative losses compared to other tokens, it could be considered a better than expected performance.

Read our latest market report

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