GMX jumped to $54.20 in Wednesday trading, up 34.2% on the day, according to CoinGecko. It briefly crossed $60, falling just short of its record high of $62.10 set earlier in the year.
While the fast-growing decentralized exchange has shown its strength over the past few months, today’s rally can be attributed to the new listing of the world’s leading cryptocurrency exchange, Binance.
In a post on Wednesday, Binance revealed that it will list GMX/BTC, GMX/BUSD and GMX/USDT trading pairs starting today. GMX jumped within minutes of the announcement, proving that Binance’s choice to list still has a big impact on market dynamics.
For several years now, exchanges like Binance and Coinbase have shaken up the markets whenever they list relatively illiquid tokens for trading, often resulting in parabolic upward moves. An exchange listing is generally considered good news for token projects, but exchanges are sometimes criticized for alleged insider trading (since exchange officials tend to be informed of token listings before the public, they can theoretically beat the market, by buying assets before they go live). In July, the Department of Justice and the Securities and Exchange Commission charged a former Coinbase employee and two of his associates with alleged insider trading; the former Coinbase employee pleaded not guilty.
GMX is a fast growing decentralized exchange specializing in perpetual futures. Built on the Ethereum Layer 2 Arbitrum and Avalanche network, it offers DeFi traders up to 30x leverage on BTC, ETH and other assets. According to the GMX website, it currently has approximately $741 million in assets under management. GMX was launched towards the end of the cryptocurrency boom in late 2021, but as its popularity grew, the GMX token surpassed most other cryptocurrencies. It took a hit after the liquidity crisis in June, hitting a low of around $11.53. Since then, it has jumped over 370% as other assets like BTC and ETH struggle in a tight range.