Is $1 billion a day in volume the ‘new normal’ for Uniswap
Trading volume on DEX-exchanges exceeded $ 25 billion
Trading volume on DEX exchanges has grown more than 25 times this year
Until 2020, DEX’s monthly trading turnover did not reach $ 1 billion
New DeFi protocols and tools were the main driver of this growth.
The indicator of monthly trading volumes on decentralized exchanges (DEX) has grown 25 times over the past year, exceeding the $ 25 billion mark.
The outgoing year 2020 will be remembered by many as the boom year of the decentralized finance market (DeFiDecentralized Finance (DeFi) – this is financial services, technology-based blockchain that offer users access to open, effective and … More). Against this background, an aggressive growth in trading volumes on decentralized exchanges (DEX) has been observed in the past six months..
Decentralized applications have been the trademark of the Ethereum ecosystem and a number of other blockchain protocols from the outset. However, many of them were able to deploy in full force only in 2020..
The same applies to DEX exchanges, which have been on the market for a long time – since 2017/2018, and some longer. However, it was recently that they began to declare themselves more and more loudly and gain more and more popularity. In part, this is also due to the tightening of the position of the regulatory authorities regarding the crypto space..
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The growth in Decentralized Exchange volume in the past 6 months has been unprecedented.
2021 will be the year of the DEX pic.twitter.com/oqZxVMOXVX
– Argent (@argentHQ) December 9, 2020
DEX dynamics change
According to data from Argent, a project that represents the popular Ethereum wallet for mobile devices, up to the beginning of 2019, trading volumes showed very low activity..
So, for the period from January 2018 to January 2019, the volumes on the DEX exchanges remained almost unchanged. The crypto market was at that time in a state of “protracted winter”, and the infrastructure capable of attracting users to the DeFi segment was just being created..
Since January 2019, a consistent increase in the volume of assets locked in DeFi protocols (TVL) has begun. It crossed the $ 1 billion mark for the first time.
In 2020, the first half of the year turned out to be relatively calm for the DEX-exchanges, but at the same time, the indicator still almost reached $ 5 billion by July. Further, the growth went exponentially. In August, DEX trading volumes hit the $ 10 billion barrier, and in September they already exceeded $ 25 billion.
Now the indicator has retreated from these record highs by about $ 15 billion, but still remains at high levels..
Previously, users and institutions have traditionally been more likely to trust centralized exchanges, despite the multi-million dollar losses of such exchanges due to hacker attacks..
The situation changed dramatically in 2020, when the active development of the DeFi segment opened up new opportunities for investors to generate passive income. The topic of profitable farming attracted a huge number of new players to this industry..
Since this liquidity mining occurs primarily through applications built on the Ethereum blockchain, it has become an important growth driver for the entire decentralized finance industry..
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