Arbitrum Nitro upgrade leads to increased activity in Ethereum layer two solution. Although the project does not yet have its own token, investments have long-term prospects for these two altcoins.
Successfully completed the Arbitrum Nitro upgrade
Arbitrum’s Nitro launch was a success and on-chain metrics are showing solid results. Day trading rose to all-time highs. It broke the records for September 2021 and July 2022. However, Arbitrum currently does not have a native token. Investors can take two paths to grow with the network: GMX and Dopex.
Ecosystem tokens that Arbitrum fans follow closely
GMX allows its users to trade with up to 30x leverage. The platform is exclusive to Arbitrum and currently generates around $400,000 in fees per day on average. This makes it one of the highest revenue crypto protocols behind Ethereum, Binance Smart Chain, Aave, Uniswap and Synthetix.
The protocol has two cryptocurrencies. These are GMX and GLP.
- GMX is the exchange’s service and management token. GLP is a liquidity token. GMX accrues 30% of the fees generated from the protocol. The token price has reached a new high of around $50.2 since Arbitrum’s Nitro upgrade. It had previously hit a low of around $12.3 in early June.
- On the other hand, GLP accrues 70% of the fees from the transactions. By purchasing GLP, you can automatically join stake pools. So it can only be achieved in the GMX protocol itself. While the token offers higher rewards than GMX, GLP holders act as counterparties to leveraged traders on the exchange. Therefore, the performance of the GLP token depends on market conditions and trader practice.
The GMX exchange is one of the largest native apps on Arbitrum. However, GMX and GLP can serve as proxies to participate in Arbitrum network growth. The GMX token has proven particularly vulnerable to previous Arbitrum updates. On the day of Nitro’s launch, the coin rose from $44 to $51. However, it dropped from $18.7 to $15.2 when Arbitrum’s Odyssey was temporarily delayed.
Dopex
Dopex is a decentralized options exchange. Like GMX, the protocol uses liquidity pools to enable investors to buy or sell options contracts for cryptocurrencies without permission. Just like GMX, Dopex has two tokens: DPX and rDPX.
- DPX is the utility and governance token of the protocol. A total of 500,000 tokens have a stable supply, of which around 60% are currently in circulation. Its emissions will cease in early 2026.
- DPX also accrues fees from Dopex. Fees are derived from option purchases, trades and exercises. 70% of these go to Dopex liquidity providers and 15% to DPX stakers. RDPX is a multipurpose token that can be used to increase the rewards generated by the fees.
16249
