• GMX moves to Arbitrum, threatening Avalanche and causing decreased sentiment, declining TVL & NFT trades.
• Despite the negative conditions for Avalanche, the number of stakers on the network grew by 21.5%.
• GMX’s move could be due to increasing popularity of Arbitrum and its ability to handle larger volumes of transactions efficiently.
GMX Moves To Arbitrum
The latest data from Artemis suggests that the majority of GMX’s activity has shifted from Avalanche [AVAX] to Arbitrum, raising concerns about its potential impact on Avalanche. As GMX is currently the largest perp by market cap and outperforms many competitors in terms of Total Value Locked (TVL), this shift threatens AVAX’s future.
Decreasing Sentiment for AVAX
Santiment’s data indicates that overall sentiment surrounding Avalanche was negative, leading to a decline in TVL which stands at $970.16 million at press time. Additionally, volume for AVAX fell from 1.2 billion to 3.14 million and NFT trades also declined, indicating an overall lack of interest in the token. On a positive note, volatility has decreased which could attract some stability-seeking investors.
Staking Activity Up
Despite these negative conditions for Avalanche, Staking Rewards data reveals that the number of stakers on the network grew by 21.5% in the last month, reaching 65,988 at press time – suggesting there is still some interest in AVAX despite its current state of affairs.
Possible Reasons For Move To Arbitrum
GMX’s move from Avalanche may have been prompted by several factors including increasing popularity of the Arbitrum network and its superior ability to process larger volumes of transactions quickly and efficiently compared with other networks such as AVAX’s own Ethereum blockchain network .
While it remains uncertain what will happen with Avalanche going forward following GMX’s move to Arbitrum , it is possible that if enough investor interest can be maintained then it could still recover and continue growing as a platform despite its current difficulties .