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 LookOnChain, crypto finance service provider Amber and crypto institutional asset manager Arca are both in the midst of accumulating GMX, the popular DEX built on Arbitrum.
“We noticed that Amber Group and Arca are accumulating GMX.
Amber Group received 122,144 GMX ($9.8M currently) from Binance and Arca bought 66,448 GMX ($4.4M currently) from [a] DEX.
Amber Group received 122,144 GMX ($7.56M at that time) from Binance in the past 1 month, the average receiving price is ~$61.9.
These 122,144 GMX were transferred to 3 new addresses.”
LookOnChain says that Arca, which had $500 million in assets 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 ($3.5M) at an average price of ~$81.5 in the past 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 crypto assets on the market that finished off 2022 in the green, and has rallied hard since the start of the new year.
At time of writing, GMX is up 80% since the beginning of 2023, currently trading at $76.21 with a market cap of $646 million.
According to blockchain analytics platform Dune Analytics, BitMEX founder and crypto veteran Arthur Hayes is currently the 5th largest holder of GMX.
Hayes has previously referred to GMX as a “super-powered” crypto asset in his portfolio.
“If you want to start down the path towards finding the right asset to both participate in the upside and earn income while you wait for the return of the bull market, pull up a site like Token Terminal and look at which protocols generate actual revenue. It is then up to you to investigate which protocols have appealing tokenomics.”
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