Despite the fact that TVL has seen significant expansion, the entire trading activity on the DeFi protocol fell far short of expectations. According to data provided by Token Terminal, the weekly trading volume on the platform had a significant drop throughout the month of February, going from around $2.4 billion in the middle of the month to approximately $1 billion at the end of the month.From the previous week, the weekly average number of daily active users has seen a decline of more than 20%. This indicated that the amount of activity on the network was much lower in comparison to its TVL. At the time this article was written, GMX had a low Market Cap to TVL Ratio, which stood at 0.52. Here is an alternative method of looking at the situation. This indicated that the project was being undervalued, which opened the door for more investments to be made.GMX&#39;s network expansion has slowed down significantly over the last month, which indicates that new addresses have been avoiding the company. It&#39;s possible that one of the reasons is that the network&#39;s profitability has been going down recently, as seen by the decreasing MVRV Ratio. The possibility of lower returns on the assets may have discouraged potential new consumers from signing up for GMX services.As a direct consequence of these several variables, investors began to adopt a pessimistic outlook towards the latter half of the month of February. According to CoinMarketCap at the time of this writing, GMX has seen a loss of 1.45% during the previous twenty-four hour period. Since it reached an all-time high of $84, which it reached on February 18th, the price has dropped by more than 20%.At the time of publication, the relative strength index (RSI) had fallen below the neutral value of 50 after a gradual decline over the same time period. The Moving Average Convergence Divergence (MACD) was very close to entering a region that is considered to be bearish. A pessimistic projection for the coin&#39;s future was provided by the indicators. This presumption will be proven correct if the price of the currency falls below the stated support level of $63.

GMX’s Growth in TVL is a Matter of Joy, But There’s a Caveat

ItsBitcoinWorld

Andre artikler udgivet 6. mar. 2023

Binance Widens Anti-Scam Initiative After Successful Pilot

5,000 PHX + 50 USDT Giveaway on Sweep Widget

Analyst Shares His Thoughts About BTC’s Weekend Performance

Cryptopia | February Monthly Recap

Kromatika Gasless Swap an edge over competitors

Infinity Arena to announce Battle PvP Betting Mode Release

Join our free newsletter for daily crypto updates!