How to Use a Decentralized Exchange: Workshop @ HCPP 2020
Decentralized exchanges set record for trading in July
Decentralized exchanges set a record for the second month in a row
Trading growth on decentralized exchanges grew by 174%
Centralized exchanges are more popular than DEX
According to Dune Analytics, in July, decentralized exchangesCryptocurrencies continue to march across the planet, becoming increasingly mainstream and finding new areas of use. People are buying bitcoin, … More has set a new record for trading volumes, reaching $ 4.32 billion.
Decentralized exchanges are breaking records
In July of this year, decentralized exchanges set a new record for trading volumes, increasing this figure from $ 1.52 billion in June to $ 4.32 billion in July. The growth was 174%. Almost half of the trading, namely 41%, fell on the Uniswap cryptocurrency exchange. Also, Curve, Balancer and Bancor Network entered the top of the most productive decentralized exchanges, which significantly exceeded trading volumes in comparison with June this year..
“For investors seeking access to the latest in Decentralized Finance (DeFi) projects. Decentralized Finance (DeFi) – this is financial services, built on blockchain technology, which offer users access to open, efficient and … More), decentralized exchanges are the first and often the only options for making these initial investments, ”said Joseph Todaro, Managing Partner, Blocktown Capital.
Bitcoin remains the main trading instrument on decentralized exchanges. Traders also make money on speculation with ETH coins, bitcoin forks and other coins from the top 20. But it is worth noting that traders also traded in hype cryptocurrencies such as DogeCoin or Tendies, which actually means “chicken fingers”.
Services such as crypto lending are also popular on decentralized platforms, Kyle Davis, co-founder of Three Arrows Capital said..
As a reminder, BeInCrypto previously reported that the June trading volume on decentralized cryptocurrency exchanges reached a record high $ 1.52 billion, up 70% from May values. The largest volumes were recorded on the Curve and Uniswap exchanges ($ 350 million and $ 446 million, respectively). Both sites are automated market makers that can also act as decentralized exchanges. Recently hacked Balancer platform recorded $ 93 million in trading volume, nearly 2,500% higher than May’s.
According to Jack Proudi, financial analyst at Messari, this rapid growth can be attributed in part to the fashion for automated market making. As a result, these markets offer deeper liquidity for cryptocurrency assets, and sometimes much less significant slippage than at centralized sites..
DEX become more popular
Decentralized cryptocurrency exchanges are widely known for their high level of security. They also allow peer-to-peer cryptocurrency trading without interference or moderation from centralized authorities..
True decentralized crypto exchanges generally do not require customer information and do not adhere to KYC / AML checks. However, despite the fact that such exchanges embody the very ideology of the cryptocurrency industry, they have failed to attract much attention compared to centralized exchanges..
Lack of interest in DEX is often due to lack of liquidity. Trading participants simply cannot carry out operational transactions due to insufficient capital on the site.
As Alexander Momot, the founder and CEO of the Swapy.app crypto exchange, said in an exclusive interview with BeInCrypto, a service such as Uniswap has significantly increased its trading volume – this is a new trend, and, most likely, such sites will take over most of the market from conventional decentralized exchanges, which they simply copy the work of centralized sites, which is an ineffective solution. Already, Uniswap has overtaken Idex in terms of trade turnover, and this trend will grow, redistributing the share of decentralized sites within the market.
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