When the market was shaken by the FTX collapse, many tokens went downhill, but some enjoyed a surge in price and popularity. Among them, GMX, the native token of the decentralized exchange GMX, is a great example of what happens when the community shifts its attention.

Due to the general vibe of distrust in the crypto industry toward centralized exchanges, users started flocking to decentralized platforms like Uniswap and GMX. Both exchanges saw significant increases in trading volumes and their respective tokens went up on the market.

The GMX journey

Retail traders who felt the changing wind managed to buy GMX at about $40 on November 29. The GMX token was doing fairly well at that moment, with the price going up after the FTX debacle started.

However, a short price correction was identified by many retail traders as a perfect opportunity to enter the market with a long position. Those who cashed out at the monthly peak saw a massive 50% profit in just 2 weeks.

Since December 14, the price has been falling down as the whole crypto market experienced a painful correction after a short-term rally following the publication of the US CPI report.

Infused with hope, bulls tried to push but were rejected at important resistance levels. The price bounced back, and a new bearish movement formed in the market, causing temporary panic among traders.

Nevertheless, a 15.8% loss was nothing to GMX token holders because they are still 24% up since the end of November and may see another big surge at the beginning of 2023.

It may be too risky to keep GMX tokens

The surge in GMX price was caused by the anxiety experienced by retail traders due to massive withdrawals from Binance, the biggest crypto exchange in the world.

Despite a forming narrative in the media, retail traders are returning to the CEX platform that proved it has sufficient liquidity to cover all user accounts.

GMX and Uniswap may start experiencing the opposite of what was happening at the end of November as more people return to using more convenient platforms like Binance.