Try Quests to earn crypto[Polygon] - Gains Network vs GMX
Bounty Question
A war of the trading platforms? GMX (native to Arbitrum) - GNS (native to polygon, but announced will be launching on Arbitrum soon). Both platform native tokens (GMX - GNS) have seen meteoric price growth during a bear market. Since June GNS has gone from $0.68 to $3.68 and GMX has gone from $13.70 to $41.56.
Observe Trading volume. Has one platform absorbed more volume than the other? How impactful is GNS volume to polygon? GMX volume to Arbitrum? Are there any insights that can reveal why Gains Network wants to move into the Arbitrum ecosystem?
Gains Network Overview
Gains Network is developing gTrade, a liquidity-efficient, powerful, and user-friendly decentralized leveraged trading platform.
Network uniquely designed synthetic architecture makes gTrade more capital efficient than any existing platform, allows for low trading fees, and a wide range of leverages and pairs (up to 150x on cryptos, up to 1000x on forex, and up to 100x on stocks)
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. [Source: Gains Network Documentation]
GMX: A Brief Explanation
GMX is a decentralized spot and perpetual contract trading platform that supports low swap fees and zero price impact trades allowing users to leverage up to 30x on their trades.
This protocol first went live on Arbitrum in September 2021 before launching on Avalanche at the beginning of 2022.
Trading is supported via a unique multi-asset liquidity pool that generates rewards from market making, swap fees, leverage trading (spreads, funding fees & liquidations) and asset rebalancing which are channelled back to liquidity providers.
Some platforms take things to a new level of complexity, and one of them is GMX. This system aims to combine advanced decentralised finance with the concept of the crypto exchange
Methodology
In this dashboard, this dashboard is used as a reference for queries. Major credit should be given to Ali for this dashboard.
But the path taken in this dashboard was in the following order:
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In the first step, three main parameters (number of transactions, number of users and volume of USD transactions) were calculated for both platforms.
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In the second step, sub-parameters (average volume of transactions, median volume of transactions, maximum volume and minimum volume of transactions) were determined for both platforms.
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In the third step, the distributions were obtained. Distribution of USD volume of transactions, USD volume of traders and number of traders' trades. These distributions were obtained for both platforms and plotted side by side.
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In the fourth step, the averages of the main parameters per day were calculated.
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In the fifth step, the top traders in two platforms were determined. These top traders were determined both in terms of the number of trades and the volume of trades.
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In the sixth step, the daily status of these two platforms was checked in terms of three main parameters. Also, the cumulative chart for the parameters of the number of transactions and the volume of trades and the chart of new daily traders were also drawn and placed in the dashboard.
- In the seventh step, the native tokens of each of these platforms were compared with each other. These tokens were reviewed both in general and daily. Also, the number of daily transactions of these tokens was compared with the total number of transactions of the relevant network and the number of transactions of active users, to determine whether there is a relationship between these parameters or not.
Platforms Overview
Despite the fact that Gains Network was launched more than two months earlier than GMX, it is completely defeated by GMX in terms of key parameters:
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Number of transactions in GMX: 1.84 times Gains Network
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Number of traders in GMX: 8.85 times Gains Network
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Volume of USD transactions in GMX: 4.84 times Gains Network
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GMX is superior in most sub-parameters:
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Average volume of trades in GMX: 2.61 times Gains Network
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Median volume of trades in GMX: 1.89 times Gains Network
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Maximum volume of trades in GMX: 32.7 times Gains Network
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The average trade volume of each trader in GMX: 27.72k USD
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The average trade volume of each trader in Gains Network: 50.51k USD
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The average number of trades per trader in GMX: 7.96
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The average number of trades per trader in Gains Network: 38.31
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Average Trades per Day in GMX: 2.39 times Gains Network
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Average Traders per Day in GMX: 4.61 times Gains Network
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Average Trade Volume per Day in GMX: 6.35 times Gains Network
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But in a number of sub-parameters, the advantage is with Gains Network:
- Minimum volume of trades in Gains Network: 10 times GMX
- The average trade volume of each trader in Gains Network: 1.81 times GMX
- Average number of trades per trader in Gains Network: 4.84 times GMX
Distribution of Transaction Volumes
In terms of the distribution of USD volume of trades, the order of categories is the same for both platforms. As for the less than $10 category, because the minimum trade made on Gains Network was $10, there are no transactions from this platform in this category.
Specifically, a large part of the trades made on both platforms were less than $1000.
Although the $100-$1000 category is the best on both platforms, the gap between this category and the second category (i.e. $10-$100) is only 5.45k transactions on Gains Network. While the difference between the first two ranks in GMX is 24.4k transactions. There is a possibility that the first and second place in Gains Network will change in the near future.
In all categories, GMX outperforms Gains Network. But how is this superiority in each category, we can say:
- Ratio of the number of transactions in transactions less than $10: There will be no ratio here. Because there are no transactions from Gains Network in this category. But more than 15k transactions have been registered on the GMX platform.
- The ratio of the number of transactions in $10-$100 transactions: 1.388 times
- The ratio of the number of transactions in $100 - $1000 transactions: 1.818 times
- The ratio of the number of transactions in transactions of $1,000 - $10,000: 2.57 times
- The ratio of the number of transactions in transactions over $10,000: 3.31 times
- The ratios obtained above clearly show that the higher the volume of USD transactions, the greater the superiority of GMX.
Top Traders
Half of the top traders (in terms of number of trades) belong to Gains Network. This is clearly related to 38.5 percent of traders on this platform who had made more than 10 trades.
But when it comes to top traders (in terms of volume of trades), there is a clear advantage with GMX. The traders of this platform have 7 top ranks of top traders.
The only trader who is among the top 10 traders in terms of both the number of trades (rank 10) and the volume of trades (rank 3) owns the following address: 0x812e168a932bed88c7de5a6efa97b19b1ab03070
The top trader in terms of the number of trades is Gains Network. He is in first place with 6313 trades with a difference of 2862 trades. He has done 3.37% of all trades done on the Gains platform alone! (0xf53ad4999769c358f7bec7deefbe3c656d94feea)
The top trader in terms of trade volume is related to GMX. He has traded a total of 78.61m USD on this platform! This amount is at least 45.8m USD more than the trading volume of the second ranked trader. This trader alone has done 6.63 percent of the total volume of trades done on this platform! (0x57790b0b998ba2c9dfe55e73300ffc1d3e457169)
Daily Overview
In the last days of June and the first days of July, an exceptional peak in the number of daily trades on the GMX platform can be observed. This peak is very, very likely related to the Arbitrum Odyssey campaign, where GMX was chosen as the task of the second week of this campaign, and therefore the number of trades made on it has increased sharply. But after this, the number of trades made on this platform has clearly increased. This continuous upward trend ended in September.
In the case of Gains Network, the trends are not such that one can make a firm opinion about it. The big and sharp peak around May 11th is most likely related to the Terra disaster and the dramatic market crash in those days. To a certain extent, it is possible to consider a fixed general trend for the number of daily trades of this platform, which has gone beyond this trend without significant changes in a few days, or has fallen below this trend in a few days without significant changes. The upward trend of the market in November has again brought trades on this platform close to the level of trades at the peak of May.
The volume of daily trades, however, has followed a different trend. In the GMX chart, although the impact of the Odyssey campaign can be clearly seen, the peak of daily trading volume is in mid-September.
The volume of daily trades on the Gains platform also shows that there was a very good upward trend that existed before the Terra disaster, after which the crash has experienced a noticeable drop. This downward trend continued until the end of July, and since August, it has started an upward trend again (at least 600% growth). So that at the end of October, comparable values can be seen with the values at the end of April.
The number of unique daily traders on GMX suddenly exploded at the end of June (from less than 500 traders to over several thousand traders) under the influence of the Odyssey campaign. But regardless of this campaign, the trend of the number of daily traders has been almost always upward from the beginning to September, but after that and in October, a clear decrease in the number of daily traders of this platform can be seen.
The number of unique daily traders on the Gains platform, after experiencing two peaks in April and May, has been on an upward trend since July, and reached its highest number of daily traders in the early days of November.
The number of new traders on GMX should clearly have been affected by the Odyssey campaign, and it was. On the 29th of June, about 7000 new traders have been added to this platform. This number alone is 1.42 times the total number of traders on the Gains platform. But regardless of that campaign, an upward trend can be seen in the number of new daily traders. Peaks can be seen here in the months of October, September and August.
The new trades of the Gains platform have also entered this platform in April more than any other month. In the worst days of the bear market (June and July), the least number of new traders have been added to this platform. But the regrowth in this parameter can be seen in recent months.
GNS vs GMX
The native token of the GMX platform (i.e. GMX) is completely superior to the native token of the Gains platform (i.e. GNS). In terms of price, volume of transactions, number of users and volume used, this superiority can be clearly seen.
The number of GMX token transactions is 1.56 times the number of GNS token transactions.
The number of GMX token users is 7.89 times the number of GNS token users.
The daily charts show that the number of daily transactions of the GMX token has been on the rise, as well as the number of daily transactions of the entire Arbitrum network and the number of daily transactions of active users of this network.
While the daily charts show that the number of daily transactions of the GNS token (as opposed to the GMX token), the total number of daily transactions of the Polygon network (which is decreasing) has had an upward trend. The active users of the Polygon network have had a relatively constant number of transactions, although around October 20, an increasing trend can be observed in their case.
Distribution of Traders by Trade Volume
In terms of the distribution of USD traders' volume, unlike the previous distribution, the order of categories is not the same for both platforms. In Gains Network, the number of users in each category is at the same level, and the difference between the first category (i.e. $1000-$10000) and the last category (more than $10000) is only 239 users. While in GMX, the number of users in each category is very different. In this platform, the difference between the first category (i.e. $10-$100) and the last category (less than $10,000) is only 25,499 traders!
The above distribution shows that the total trade volume of 60% of GMX platform users was below $100. While in the case of Gains Network, the number of people in this category is only 25.2% of the total traders of this platform.
In the category less than $10, because the minimum trade made in Gains Network was $10, there are no traders from this platform in this category.
In all categories, GMX outperforms Gains Network. But how is this superiority in each category, we can say:
- The ratio of the number of traders with a trade volume of less than $10: there will be no ratio here. Because there are no Gains Network traders in this category. But there are 414 traders on the GMX platform whose trading volume is less than $10.
- The ratio of the number of traders to the total trade volume of $10 - $100: 21.05 times
- The ratio of the number of traders to the total trade volume of $100 - $1000: 7.33 times
- The ratio of the number of traders to the total trade volume of $1,000 - $10,000: 3.46 times
- The ratio of the number of traders with a total trade volume of more than $10,000: 2.95 times
The ratios obtained above clearly show that as the volume of trades has increased, the superiority of GMX has decreased.
Distribution of Traders by Number of Trades
In terms of the distribution of the number of trades of each trader, the order of categories is not the same for both platforms. In GMX, a large part of traders (53% of all traders) have made only one trade. While the traders who have made only one trade in Gains Network constitute 20.4% of the total traders of this platform.
Top traders in Gains Network are those who have made more than 10 trades. 38.5% of Gains Network traders have this situation. Traders with more than 10 trades make up only 10% of the GMX traders community.
The category 6-10 trades is the category that contains the least number of traders in both platforms, which is an interesting point. It seems that most of the traders of both platforms have finished their adventures in these platforms with less than 6 trades.
In all categories, GMX outperforms Gains Network. But how is this superiority in each category, we can say:
- The ratio of the number of traders with only one trade: 22.96 times
- The ratio of the number of traders with 2-5 trades: 9.63 times
- The ratio of the number of traders with 6-10 trades: 3.92 times
- The ratio of the number of traders with more than 10 trades: 2.30 times
Although the ratios obtained above show that the higher the total number of trades of each trader, the greater the superiority of GMX. But it should not be overlooked that the number of GMX traders is 8.85 times the number of Gains Network traders.