GMX and dYdX Battle for Top Spot in Decentralized Derivatives Trading

In the Brief:

  • dYdX and GMX are competing for the top spot in decentralized derivatives trading volumes and liquidity
  • Both platforms have planned improvements lined up
  • DYDX token's price has surged 134% since the start of 2023 compared to GMX's 90% year-to-date gains

3 - 4 minute read

Decentralized derivatives platform dYdX and GMX are currently vying for the top spot in liquidity and trading volumes. While dYdX recorded trading volumes between $340m to $2.6bn in March, GMX recorded less than $500m in daily trading. Meanwhile, the open interest (OI) volume, which measures the number of contracts traders hold on both exchanges, shows a closer competition, with GMX’s OI at $170m to $200m since March 2023 on Arbitrum alone, and dYdX’s OI volumes staying between $330m to $260m. At present there is no clear winner between the two platforms.

Improvements lined up for dYdX and GMX

Both platforms have advantages and shortcomings, with updates lined up for this year to improve their product lines. dYdX had paid more incentives than earned in fees, however, the team is working on accruing “real value” for the DYDX token by directing trading fees toward holders. They also plan to launch a Cosmos-based independent Layer-1 chain this year. On the other hand, GMX’s decision to deploy on Arbitrum has enabled the platform to establish valuable partnerships with Camelot, Olympus DAO and Umami Finance, boosting liquidity and usage.

DYDX/USD daily trading chart. Source: TradingView

DYDX token’s price has surged 134% since the start of 2023 compared to 90% year-to-date gains in GMX. The token accumulation data from Nansen shows that ‘smart money’ wallets have accumulated dYdX fervently since the start of 2023. Meanwhile, GMX token reached new all-time highs of $85.95 in March 2023, with the 2022 peak around $58.91 as support.

GMX price chart. Source: CoinGecko

Takeaway for traders

Although there is no clear winner as to which platform is the best, both have planned improvements that are expected to positively impact both DYDX and GMX. Traders should research both platforms and carefully evaluate the potential risks and rewards associated with each.

Disclaimer: The content in this article is provided for informational purposes only and should not be considered as financial or trading advice. We are not financial advisors, and trading carries high risk. Always consult a professional financial advisor before making any investment decisions.

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