What is GMX Protocol ?

GMX is a decentralized spot and perpetual exchange on Arbitrum and Avalanche chains that supports low swap fees and zero price impact trades. Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees and leverage trading. Dynamic pricing is supported by Chainlink Oracles and an aggregate of prices from leading volume exchanges. Read More …

GMX Token:

GMX token is the GMX platform's utility and governance token, holding the token unlocks a variety of benefits and also Accrues 30% of the platform's generated fees. Read More …

What is Gains Network ?

Gains Network is a decentralized derivatives trading platform built first on the Polygon network and expanding to other decentralized networks. On gTrade, crypto derivative traders are allowed up to 150X leverage and up to 1000x for forex trades. The protocol revolves around the ecosystem's ERC20 utility token (GNS) and ERC721 utility token (NFTs). GNS and the NFTs are designed to be actively used within the platform (utility) and to allow ownership of the protocol through revenue capture & governance (soon). It includes GNS holders receiving platform fees through Single Sided Staking, burning of GNS using platform revenue, NFT holders getting reduced spread and boosted rewards, as well as NFT bots executing limit orders and liquidations.

Methodology

In this dashboard, We are going to compare trading on GMX Protocol (on Arbitrum (Native) & Avalanche) and Gains Network (on Polygon (Native) & Arbitrum) in several metrics (mainly focusing on trades volume).

Then, We are going to provide some data about GNS and GMX tokens and their impact on the Arbitrum and Polygon chains and also the users behaviours with them.

For GMX Protocol, we are going to mainly use arbitrum.core.fact_event_logs and avalanche.core.fact_event_logs table and for Gains Network, we are going to mainly use polygon.core.fact_event_logs and arbitrum.core.fact_event_logs table.

• Gains Network Trading Contract Address (Polygon) = '0xd8d177efc926a18ee455da6f5f6a6cfcee5f8f58','0x65187fec6ecc4774c1f632c7503466d5b4353db1','0xf8a140db8b05bec52c7e86d0d40d72f8e54fe559'. (The last two addresses are decepreated atm but anyway we are going to use them to include old data on our analysis).
• Gains Network Trading Contract Address (Arbitrum) = 0x2f67a8d26f370b922b31b199c7946c3ed53c10c6
• GMX Protocol Positions Router Contract Address (Arbitrum) = '0x3d6ba331e3d9702c5e8a8d254e5d8a285f223aba','0xb87a436b93ffe9d75c5cfa7bacfff96430b09868'.
• GMX Protocol Positions Router Contract Address (Avalanche) = ‘0xfff6d276bc37c61a23f06410dce4a400f66420f8’
• GMX Token Contract Address on Arbitrum = '0xfc5a1a6eb076a2c7ad06ed22c90d7e710e35ad0a’ (Decimals = 18)
• GNX Token Contract Address on Polygon = ‘0xe5417af564e4bfda1c483642db72007871397896’ (Decimals = 18)

on GMX protocol, there are several assets which can be used for trading (USDT, USDC, WETH, WBTC, LINK, FRAX, DAI, UNI). So, for calculating the USD Volume of trades, we have to use ethereum.core.fact_hourly_token_prices to join data on these tables and calculated the USD Value of trades.

on Gains Network, trades are done with DAI token only and since this token is already USD-Pegged, we do not have to join it with additional tables to calculated USD value of trades.

Trading Fees: on Gains Network, the generated fees for trading tokens is 0.08% and on GMX, The cost to open / close a position is 0.1% of the position size.

in both protocols, I am going to only consider succesfull transactions (TX_Status = ‘SUCCESS)

Overall Trading Stats

According to the above charts, the trading activity on GMX is more than Gains Network in all terms of number of trades, number of traders and also total and average and median and maximum volume of trades.

Despite high difference in Trading volume & also active traders, the difference between number of trades between these 2 protocols is not very high.

GMX has almost 6x more trading volume, 10x more Traders and almost 2x more trades than Gains Network.

Also, the total and average generated fee from tradings on GMX platform is more than Gains Network.

Majority of trades on Gain Network are done with $10 - $100 volume and the second rank belong to the trades with $100 - $1000 volume.

but on GMX, the majority of trades are done with $100 - $1000 volume trades with $10 - $100 volume are on the second rank.

Moreover, the share of high-volume trades (more than $10000) and also low-volume trades (less tahn $10) on GMX is more than Gains Network.

Totally, the variety of trading volume on GMX is more than Gains Network.

And on the left chart, we can see the daily number of trades and traders and also the average volume of daily trades on GMX protocol is more than Gains Network.

Despite the higher number of traders on GMX, Gains Network has more active traders. an average trader on Gains Network performs more number and also volume of trades than GMX protocol. The difference between number of trades is more than trades volume.

Majority of traders on GMX protocol have totally done $10 - $100 trading but the share of users with different total trading volume on Gains Network are very close to each other. Most number of them have performed $1000 - $10000 volume of trades.

the majority of GMX traders have totally done 1 trade on this protocol but on Gains Network, the most number of users have done more than 10 Trades! This can show the loyalty and also higher activity of Gains Network traders.

Among the top 10 traders in terms of volume, 9 are from GMX and only 1 is from Gains network But on the other hand, among top 10 traders in terms of number of trades, there are equal number of traders from both protocols.

In terms of volume: 0x812e168a932bed88c7de5a6efa97b19b1ab03070 is the top trader on GMX with a total of 96.85M USD volume and 0x942f2d75e01fa5eaf9e127b22326c12311ac5bc1 is the top trader on Gains Network with total 28.45M USD.

In terms of trades count, the wallet address 0x9f72be3e712eb50fdbe9a2278e0ec73491dd9237 is the top trader on GMX with total 11.513k trades and the wallet address 0xf53ad4999769c358f7bec7deefbe3c656d94feea is the top trader on Gains Network with 6313 trades.

Traders Stats

Over-Time Charts

According to the above chars, we can see the activity of trades and traders on GMX is more than Gains Network in almost all days over time (after its launch). the total daily and average volume of Trades on GMX protocol is also more than Gains Network.

We can see most activity on GMX has been achieved During Late-June 2022 and this is mainly because of the Arbitrum Odyssey event. As we see, during this timespan the number of active and new traders and also total number of trades on GMX have increased dramatically and caused very high spikes on their chart but there is not a high spike on the volumes chart since these users had to do only 1 transaction with any volume in order to get participated in the Odyssey.

Arbitrum Odyssey is a multi-week initiative for exploring the Arbitrum ecosystem with exclusive NFTs as rewards. Of course, no Arbitrum airdrop is promised. But it would make sense: all participants would be using Arbitrum and could later be easily identified through holding NFTs.

Anyway, the highest spikes of Gains Network is not as high as GMX protocol. We can also see GMX protocol is absorbing Gains Network volume and also trades (in %wise area charts).

Totally, since the launch of GMX, this protocol has kinda absorbed the market share of Gains Network. The number of trades, active traders and also average volume of trades on both protocol is increasing as time goes on (with a higher growth rate on GMX) but the growth rate on volume of trades on these protocols has less growth rate. there is also another higher spike of trading activity on both platforms during November 2022 and this is mainly because of the market crash due to the FTX & Alameda collapse that resulted in heavy volatiles on the Cryptocurrency market.

GMX and GNS Tokens

GMX is native to Arbitrum & GNS is native to Polygon. So, this is obvious that their activity within their native chain is more.

According to the above charts, GMX Reward Router is the top destination of transactions with the GMX token on Arbitrum & Avalanche. Synapse Bridge on Avalanche is the most popular destination of GMX transactions in terms of voluem. We can also see some other famous destinations such as 1inch & Trader Joe & Uniswap (Decentralized Exchanges) and also GMX Protocol-related destinations (such as pools & yield farming) on the next ranks.

According to the left data from Coinmarketcap, GMX is way more famous and has way more market cap and followers than GNX token.

The total and Circulating Supply of GNS is more than GMX and this can be one of the reasons behind its lower price than GMX.

GMX has almost 3x more market cap than GNS and its trading volume (over the past 24 hours) is almost 5x more than GNS.

Based on the article published by Cointelegraph, GMX was named as the best-performing cryptocurrency in the year 2022 (among the top 100 currencies)!

GMX’s price uptrend mostly picked its cues from the collapse of FTX, a centralized exchange, and its listing on popular trading platforms — including Binance and Huobi Global — across 2022. In addition, the token rallied impressively in late November after its platform briefly surpassed its top DEX rival, Uniwap, in daily trading fees.

Based on the left chart, the number of transactions and also users with GMX token is more than GNS token.

So, GMX is being used on Arbitrum & Avalanche more than GNS is being used on Arbitrum & Polygon.

And on the above charts, we can see Quickswap Router is by far the most popular destination of GNS users on Polygon (in terms of volume) but in terms of number of transactions, GNS NFT Rewards is the top popular destination.

in Arbitrum, GNS Staking contract and also TraderJoe (DEX) are the most popular destinations of GNS transactions.

More Info About GMX vs Gains Network Comparison

Gains Network is a decentralized perpetual exchange with more options than GMX! You can not only trade crypto but stocks and Forex also.

If we take a look at Gains Network versus GMX, we can see that there's a lot of potential for GNS to grow as the protocol is still in its early stages of development.

gTrade offers a wider range of assets compared to GMX, with 15 vs 48 assets on cryptocurrency pairs alone. The platform also benefits traders with lower trading fees for opening and closing their positions. This can be seen from the comparison above. Despite having 13.9x less users and a 28.7x lower TVL, Gains Network has managed to net an all-time trading volume of $14 million which is only 3.4x less than GMX.

The single asset collateral (DAI) on gTrade is also a very attractive feature as users do not have to manage multiple positions using multiple assets as collateral, resulting in potential liquidations if poorly managed.

The team has plans to utilize GNS as their governance token in the future which could potentially drive the price of GNS up.

Gains Network uses a range of DeFi products to deliver a new form of trading. Through their integration of GNS into gTrade, they provide the option to leverage in ways that would not be possible with traditional brokerage platforms.

The biggest advantage to gTrade is the ability to open a 100x leveraged position while having a guaranteed stop-loss price feature as a protective mechanism during a downturn. By using a Chainlink node and taking the median price from seven major data sources, Gains Network also prevents manipulated scam wicks or false prices from impeding its daily trading.

If you’re looking for a new leverage platform that could potentially become the next big perpetual platform, Gains Network is a great choice for you.

Totally, Decentralized perpetual protocols are something to watch on the next bull run. With their effective tokenomics and non-inflationary yields, they might invite high interest from traders and liquidity providers. But still, there is a long way for them to develop, and I don't see them tackling the centralized exchanges any time soon until they fix their inherent problems and improve fast enough.

Summary

• GMX have more trading activity (number of trades, volume of trades and number of traders) than Gains Network.
• GMX trades are done with more volume than Gains Network.
• On the other hand, Gains Network has more active traders since they have more average number and also volume of trades than GMX protocol traders.
• Majority of traders on GMX protocol have done $10 - $100 trading but the share of users with different total trading volume on Gains Network are very close to each other.
• Most number of GMX traders have totally done 1 trade on this protocol but on Gains Network, most number of users have done more than 10 Trades ! This can show the high loyalty & activity of Gains Network traders.
• Among the top 10 traders in terms of volume, 9 are from GMX and only 1 are from Gains network But on the other hand, among top 10 traders in terms of number of trades, 5 are from Gains Network and 5 from GMX.
• The activity of trades and traders on GMX is more than Gains Network in almost all days over time. the total daily and average volume of Trades on GMX protocol is also more than Gains Network in all days. So, GMX protocol is absorbing Gains Network volume and also trades count.
• The highest activity on GMX has been achieved During Late-June 2022 and this was mainly because of Arbitrum Odyssey event.
• GMX token is way more famous and elder than GNS token and it has currently way more total market cap than GNS.
• The number of transactions and also users with GMX token is more than GNS token.
• Most number of popular destinations of GMX and GNS tokens are their native protocol’s ecosystems such as staking protocol,s pools, farms, reward protocol and also some DEXs such as Uniswap, TraderJoe & 1Inch exchange.
• Both of these protocols and also their tokens are more popular in their native chain. (GMX has more popularity and engagement in Arbitrum than Avalanche while Gains Network (& GNS Token) is more popular on Polygon than Arbitrum).

Discord: Ali3N#8546 Twitter: Alik_110 Email: Alik110.72@Gmail.com

Sources:

https://www.exodus.com/news/how-is-arbitrum-different-from-polygon/#:\~:text=The primary difference between Arbitrum,a reward for validating transactions.

And on the above charts, you can see the overall stats of these trading platforms during the past 24 hours, past 30 days and past 90 days.

On the above charts, we can see GMX activity within Arbitrum chain is kinda increasing over time while on Avalanche, there was a high peak of transactions with this token during the first months but after that, the total trend is decreasing over time.

GNS transactions activity within Polygon is also kinda increasing as time goes on but on Arbitrum, it is not long passed from its launch on this chain.

GMX & GNS Comparison

GNS: The GNS Tokens price has increased significantly during the recent weeks. It is interesting to note that since the beginning of 2023, the TVL of this decentralized exchange has increased more than 10 times and is currently 213 million dollars. Also, the income of this protocol has an upward trend as a result of increasing its usage. Another potential of this token can be considered the possibility of its growth if it is listed in one of the popular exchanges such as Binance or Coinbase.

GMX: As mentioned earlier, GMX had the best performance among the top 100 cryptocurrencies in the year 2022 and its a big success for this token and also its protocol.

Competitors of this decentralized exchange can potentially be all DEXs, but due to many similarities, it may be more comparable to dYdX & GMX. One of its competitive advantages is its very low transaction cost and ease of use. Also, one of the other great strengths of this currency is its non-inflationary nature, while dYdX, for example, has an annual inflation of over 200%.

Weaknesses: Currently, in this decentralized exchange, it is only possible to trade on 6 currencies and compared to the dYdX exchange, which supports more than 30 currencies, this amount is insignificant.

TVL: Currently, the value locked on this decentralized exchange is $440 million, of which $384 million is on the Arbitrum network.

Leading opportunities: there was hot news related to this currency, and that is the registration of a proposal for the support of this DEX from the BNB network, which, if done, can lead to the growth of the TVL of this exchange as well as the increase of its trading volume.