Institutional Crypto Firms Accumulating Large Amounts of Ethereum-Based Decentralized Exchange Token: On-Chain Data
Two crypto firms are scooping up large amounts of one fast-rising decentralized exchange (DEX) token, according to on-chain data from the Arbitrum blockchain.
According to blockchain tracker LookOnChaincrypto financial services provider Amber and crypto institutional asset manager Arca are both in the midst of accumulating GMX, the popular DEX built on Arbitrum.
Says LookOnChain,
“We noticed that Amber Group and Arca accumulate GMX.
Amber Group received 122,144 GMX ($9.8 million currently) from Binance and Arca bought 66,448 GMX ($4.4 million currently) from [a] DEX.
Amber Group received 122,144 GMX ($7.56 million at the time) from Binance in the last 1 month, the average receiving price is ~$61.9.
These 122,144 GMX were transferred to 3 new addresses.”
LookOnChain says Arca, which had $500 million under management as of October 2021, has bought over $3.5 million worth of GMX in the last three days alone.
“Arca bought 42,972 GMX with 2,065 ETH ($3.5 million) at an average price of ~$81.5 in the last 3 days.
And bought 23,476 GMX with 1M USDC at an average price of ~$42.6 a month ago.”
GMX was one of the only cryptoassets on the market to end 2022 in the green, rallying hard since the start of the new year.
At the time of writing, GMX is up 80% since the beginning of 2023 and is currently trading at $76.21 with a market capitalization of $646 million.
According to blockchain analytics platform Dune Analytics, BitMEX founder and crypto veteran Arthur Hayes is currently the fifth largest holder of GMX.
Hayes has previously referred to GMX as a “super powered” crypto asset in his portfolio.
“If you want to start on the path to finding the right asset to both participate in the upside and earn income while you wait for the bull market to return, pull up a site like Token Terminal and look at which protocols are generating actual income. It’s then up to you to research which protocols have appealing tokenomics.”
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Featured image: Shutterstock/animedigitalartstudio
