Decentralized exchanges (DEX) are booming and show no signs of slowing down in the near term.
On-chain data indicates that monthly volumes traded have increased exponentially since 2019.
The growth of DEX is probably the driver for much of this growth.
Decentralized Exchanges (DEX) have continued to gain traction with market players in the cryptocurrency industry. This growing attention has led to rapid growth in the volume of transactions.
Decentralized exchanges take off
Statistics from Dune Analytics, an Ethereum-based data aggregator on the channel, show that Bitcoin Union have yet to lose their momentum. The cumulative monthly volume on these platforms has gone from a paltry $ 39.5 million to $ 45.2 billion in less than two years.
Monthly DEX volume: Dune analytics
During this period, DEX platforms have evolved . And many other actors have emerged in space. As of January 2019, there were less than five active exchanges.
At that time, IDEX dominated the market with over 70% of the total monthly volume, which was over $ 34 million. Uniswap and Kyber divided up the rest of the loot.
Meanwhile, Uniswap, which currently dominates the DEX ecosystem, had a monthly volume of $ 973.30 at the start of 2019. This market share was less than 30% of total trading volume at the time.
Monthly volumes on decentralized exchanges in January 2020 amount to over $ 45.2 billion. This represents a new milestone and exponential growth as users become more familiar with the technology.
Uniswap takes the lead
The current monthly trading volume has also eclipsed the annual record. Although Uniswap already started stealing market share in January 2020, it is still behind Synthetix. The total volume of trade then amounted to about $ 1.03 billion.
Currently, the cumulative volume traded each month on DEX has increased by over 1000% since 2019. Uniswap has consumed a considerable share of the market. The data reveals that she maintained around 47% of the weekly DEX volume :
DEX and volume: Duneanalytics
SushiSwap and Curve, with a weekly volume of nearly $ 3 billion and $ 1.4 billion, take second and third place respectively.
DeFi VS DEX
The size of transactions carried out on these platforms has almost doubled from their previous record in September 2020. This growth spurt coincides with the boom in decentralized finance (DeFi).
IntoTheBlock, another data analytics company, lends credence to how DeFi has contributed to the expansion of DEX platforms. The overall market capitalization of DeFi tokens reveals some impressive numbers .
Since the start of the year, the ecosystem has grown steadily, with Uniswap also leading the rankings. As of January 10, DeFi’s market capitalization recorded its highest valuation.
DeFiPulse’s data also reflects this growth as the total value stranded within this ecosystem is over $ 25 billion. This represents a 40% increase since the end of last year.