Altcoin Sherpa Cautions That New Perpetual DEXs May Face GMX's Challenges

GMX's Decline: GMX, a once-leading perpetual DEX, has seen a dramatic drop of over 90% from its all-time highs, now trading around $8-9 with low liquidity, highlighting the volatility in the decentralized finance space.

Competition Among New DEXs: New Solana-based perpetual DEXs are facing intense competition, which may lead to market share erosion for many, as emphasized by crypto trader Altcoin Sherpa.

Long-term Sustainability: Sherpa warns that while short-term gains from yield farming may be appealing, the long-term sustainability of newer DEXs is questionable, favoring established leaders like HyperLiquid.

Historical Lessons: The article serves as a cautionary tale, reminding traders that the DeFi landscape is rapidly evolving, and past leaders can quickly lose their dominance, urging a focus on dominant protocols and risk management.