GMX, the governance and utility token that powers GMX, an arbitrum-based decentralized exchange (DEX) for leveraged perpetual cryptocurrency futures trading, is down nearly 6.5% over the past 24 hours, according to CoinGecko.
This gives it the undeserved crown of being the worst performing cryptocurrency in the top 100 by market capitalization over this time period.
GMX/USD fell to just above $50 per coin on Friday, in the process slipping below its 50-day moving average (DMA) to just above $53, having lost hold at its 21 DMA near $56 at the start of the week.
The latest drop has caused GMX to fall to its lowest level in more than a month, with the cryptocurrency now down 18% from its earlier month high of $62.
There doesn’t seem to be any specific new catalyst behind the GMX price drop in recent days.
But a quick look at DeFi Llama reveals that the protocol’s Traded Value Locked (TVL) in its smart contracts has been falling in recent months.
The ETH-denominated TVL of the protocol fell from less than 700,000 in February to less than 500,000 ETH.
Its USD-denominated TVL, meanwhile, was less than $1 billion, down from $1.26 billion at the beginning of last year.
The falling ETH-denominated TVL suggests that the protocol is struggling to hold onto crypto capital, which is not a good sign, perhaps explaining the poor performance of the GMX token recently.
Price Prediction – Where Next for GMX (GMX)?
After a rejection of the 100 and 200DMA that sent a strong bearish signal earlier this month when GMX rose above $60, GMX’s latest drop below the 50DMA (meaning it is below all of its major moving averages) confirms that the bears are back in full control.
In the absence of any major support levels except a late June low above $50, a drop to the June low of $41 is highly likely.
This could mean a drop of around 20% from the current levels.
One relief that may come to the GMX protocol is that higher yields are currently being offered to liquidity providers who mine GLP, the token that provides the protocol’s liquidity.
According to a recent tweet by GMX, this APY was last 12.5% on Arbitrum.
This is much higher than what crypto investors can get in most other corners of the decentralized finance (DeFi) market, such as staking ETH through the Liquid staking protocol (the yield is around 4%).
The outflow of crypto capital could quickly flow back to GMX as DeFi investors seek higher yields.
Of course, GLP carries significant risk – its price is negatively related to the net profits of leveraged traders on the GMX platform, which means that GLP investors could suffer losses if they start making big wins.
Consider Meme Coin Alternatives
While the outlook for GMX (GMX) is gloomy, traders should always look to diversify their token holdings.
Blue chip names like bitcoin (BTC) and ether (ETH) are always a good bet.
But for crypto investors with a higher tolerance for risk and a higher desire for near-term profits, meme coins may be the way to go.
The best way to make big profits in the meme coin market is to identify meme coin, a relatively unknown token that still has a very small market cap, but has good potential to explode to the upside.
Luckily for MEM Coin investors with a high risk tolerance, the analysts at Cryptonews.com have identified just such a perfect project.
Burnt Kenny Coin is a brand new South Park-themed meme coin that launched its presale on Thursday.
Despite only launching a day ago, the new project has already been able to sell $440,000 worth of $KENNY tokens.
Given that the project is only selling $500,000 worth of tokens, Mem Coin Degens needs to move quickly if they don’t want to miss out.
$KENNY has the potential to explode when it is launched on decentralized exchanges (DEXs), which is likely to happen as early as next week.
- Limited pre-sale availability of the token means pent-up demand and FOMO are likely to last until the DEX launch.
- Tokens are priced at a minuscule market cap of $875,000 in the presale (when you take into account the 30% token burn), leaving plenty of room for explosive upside.
- As can be verified on Team Finance, 30% of the token supply is already committed to a three-month DEX liquidity lock to ensure smooth trading conditions.
- The marketing team behind Burnt Kenny Coin also masterminded the Spongebob (Sponge), Thug Life (Thug) and Mr. Hankey (Hanky) tokens, all of which saw 3x-100x pumps. Their efforts are already paying dividends, with $KENNY appearing prominently in the crypto press.
Grab $KENNY before the presale ends
Since the project has now raised nearly $450,000, the Burn Kenny Coin presale could sell out in a matter of hours.
Now go to the Bernie Kenny website, where you can become a follower by clicking Twitter account And join the Telegram channel to be the first to know when the presale ends and about the upcoming DEX launch.
To buy $KENNY in the presale, you will need Ethereum.
connect your wallet here Burnt Kenny Coyne Website Set how much you want to buy, approve the connection and make the purchase, and you’re done.
After the presale ends, return to the site and claim your tokens.
Quietly buy $KENNY before the rest of the world wakes up, and you can get the easiest 5x, or more, opportunity in crypto.
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Disclaimer: Crypto is a high risk asset class. This article is provided for informational purposes and does not constitute investment advice. You can lose all your capital.