GMX, a prominent platform, experienced a remarkable upsurge in fees on 14 June, reaching an unprecedented peak of over $20.7 million. This surge can be attributed to a significant liquidation event that impacted GMX token holders. Through an in-depth analysis, it became evident that the fees generated were predominantly driven by these liquidation activities, marking a new fee record for the platform.
On 14 June, the GMX platform saw a notable increase in fees, accumulating an impressive sum of over $20.7 million, making it the highest recorded figure in recent weeks. This fee surge propelled GMX to become the second-highest fee-generating platform on that specific day, according to data from Crypto Fees. On that day alone, GMX accrued over $3 million in fees, maintaining an average of over $703,000 in the last seven days.
A recent report by WuBlockchain highlighted that the surge in fees was a result of a significant liquidation event on the GMX platform. On 14 June, a substantial volume of liquidation transactions occurred within GMX’s on-chain derivatives agreement, leading to a remarkable net loss of $8.67 million for traders. The fees accumulated during this period amounted to $3.13 million, further emphasizing the prominent role played by the liquidation event in contributing to the platform’s highest fee record.
Despite the liquidation event, trading activities on the GMX platform remained relatively high, as indicated by data from CoinGlass. The weighted funding rate chart demonstrated considerable trading volume, with the dominant position in the market being long. This positive expectation for the token’s price increase further instilled confidence among traders.
On 14 June, the Open Interest (OI) stood at nearly $10 million, but as of 15 June, it slightly declined to approximately $9 million. Additionally, GMX’s daily timeframe chart revealed a decline of nearly 4% in its value on 14 June. Presently, the token continues its downward trajectory, trading at around $44, reflecting a loss of over 1%.
GMX has entered a robust bearish trend, highlighted by the Relative Strength Index (RSI), which currently places it in the oversold zone. This bearish sentiment surrounding the token indicates the current market sentiment toward GMX.
GMX experienced an unprecedented fee surge due to a significant liquidation event, resulting in substantial losses for traders. Despite this, the platform continues to witness active trading volume, suggesting a positive outlook for the token’s price in the future.