Which crypto winter? GMX rises 34% on Binance listing

GMX went live on Binance earlier today.

GMX jumps amid Binance hype

One of crypto winter’s outperformers is benefiting from the Binance listing effect.

Per CoinGecko data, GMX has jumped to $54.20 in Wednesday trading, up 34.2% on the day. It briefly topped $60, falling a whisker short of its all-time high of $62.10 set at the start of the year. While the fast-growing decentralized exchange has shown strength in recent months, today’s rally can be attributed to a new listing on the world’s top cryptocurrency exchange, Binance.

In a blog post on Wednesday, Binance revealed that it will list GMX/BTC, GMX/BUSD and GMX/USDT trading pairs starting today. GMX surged within minutes of the announcement, proving that Binance’s listing selection continues to have a major influence on market dynamics.

For several years now, exchanges like Binance and Coinbase have rocked the markets whenever they list relatively illiquid tokens for trading, often resulting in parabolic upward movements. Receiving an IPO is generally seen as positive news for token projects, but exchanges have occasionally come under fire for suspected insider trading incidents (since exchange staff tend to know about token listings before the public, they can theoretically preempt 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 Coinbase alum has pleaded not guilty.

GMX is a rapidly growing decentralized trading venue specializing in perpetual futures. Built on the Ethereum Layer 2 network Arbitrum and Avalanche, it offers DeFi traders up to 30x leverage on BTC, ETH and other assets. According to the GMX website, it currently has about $741 million in assets under management. GMX was launched towards the end of the recent crypto bull run in late 2021, but as it has grown in popularity, the GMX token has outperformed most other crypto assets. It took a beating after the liquidity crisis in June, bottoming out at around $11.53. Since then, it has increased by more than 370% while other assets such as BTC and ETH struggle within a tight range.

Read Crypto Briefingits GMX product review here.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.