Decentralized Exchange Volumes (Dex) have become very popular this year and some Dex applications deal with volumes that are large for large centralized crypto exchanges. In the past seven days, Ethereum-based Dex platforms processed $ 21 billion using Uniswap, and today they capture 71% of all Ethereum-based Dex applications. Statistics from a report published by The Block Research and recently updated metrics show Dex platforms reached $ 1 trillion in volume over the year.
Dex volumes in 2021 will hit new highs, according to the Digital Asset Report
Decentralized financing (defi) has grown strongly this year and by the end of 2021 there will be more than $ 250 billion of value, which, according to defillama.com, is locked in defi-logs. Readings further point out that of all blockchain platform DEX applications, Uniswap has the most 24-hour volume today at $ 1.45 billion. This is also shown by the data Uniswap has a Total Value Locked (TVL) of around 8.81 billion US dollars, which is just below the 22.36 billion US dollars that Curve Finance holds.
In terms of today’s 24 Dex leaders, below Uniswap is Pancakeswap with $ 848 million in 24-hour volume. Below the 24-hour volume of Pancakeswap is Trader Joe ($ 453.7M), Curve ($ 453.1M), Sushiswap ($ 401M), Uniswap v2 ($ 380M), and Spookyswap ($ 185 million). Just recently, The Block Research launched a comprehensive 150 page report which cover the “2022 Digital Asset Outlook”, and the research includes both centralized and decentralized exchange volumes.
For example the Vice President for Research at theblockcrypto.com, Larry Cermak, explained in a tweet on Dec. 16 that “the block’s legitimate volume index, spot volume in 2021, will exceed $ 14.5 trillion, eight times the volume we saw last year.” Statistics from the study and a report written by Yogita Khatri further show that Dex’s trading volume was over $ 1 trillion in 2021.
“Overall, the monthly Dex volume in May 2021 reached 162.8 billion.” However, the volume has not fully recovered from the crash in May and the volume ratio of the Dex to the centralized foreign exchange spot market remained below 10% throughout the year. “
In addition to Dex volumes, the report highlights the use of Dex aggregators. According to the study, Dex aggregators are like 1 inch make up only 13.9% of the total Dex volume. “1inch was the leading Dex aggregator all year round with a market share of 64.9%, followed by 0x API (Matcha) with 16.8%,” the researchers said in detail. The scope of the researcher’s 2022 study covers numerous other topics such as market performance, derivatives markets, mining revenue, on-chain volume, stablecoins, and a summary of risk finance in 2021.
What do you think of the decentralized exchange volumes (Dex) exceeding $ 1 trillion this year? Let us know what you think on this matter in the comments below.
Photo credits: Shutterstock, Pixabay, Wiki Commons, theblockcrypto.com
Source: Crypto News Austria