• GMX, a popular Perp DEX on Avalanche, has been gaining massive popularity over the last month.
• The traction brought on by GMX and other DeFi dApps could potentially benefit Avalanche.
• However, interest in Avalanche’s NFT ecosystem is lacking, with a decrease in sales and mints over the past week.
Growth of GMX
GMX, a popular perp DEX on Avalanche has been gaining massive popularity over the last month. For context, perpetual decentralized exchanges (Perp DEXs) are decentralized platforms where users can trade perpetual contracts. According to recent data , GMX is ranked second in terms of revenue generated by a perp over the last month. The GMX protocol managed to acquire $4.1 million in terms of revenue over this period. For the most part, the revenue generated by the protocol could be attributed to the growing activity across the protocol – there are now over 300,084 users on the protocol
Potential Benefits for Avalanche
The large number of users being attracted to GMX could positively impact Avalanche in the future. Not only can GMX’s progress bring more users to the Avalanche network, but it can also help generate more revenue: Over the last week alone, both active users and fees on Avalanche surged by 15%. If GMX continues to perform positively, we may see further improvements for fees and activity in that network in general.
NFT Ecosystem
Unfortunately however, not all sectors have seen success within Avalanche due to dApps such as GMX – its NFT ecosystem seems somewhat stagnant as well. According to data shared by AVAXNFTSTATS , both sales and mints of NFTs have decreased significantly over the past week (by 12% each), suggesting that investors are not yet interested in this sector of Avalanches‘ network yet.
Conclusion
Overall it seems as though while DeFi dApps like GMX have helped increase traction for Avalanche network and are helping generate more fees/activity; its NFT ecosystem still hasn’t picked up momentum yet and needs further development before it can hope to attract investors into buying any related assets or services offered through this platform
Takeaway
Avalanche may benefit from increased traction from DeFi dApps like GMM but should focus their efforts towards developing their NFT sector if they wish to see any real returns from their investment