By Marko Vidrih on The Capital
At the moment everyone is talking about DeFi. The falling confidence in politics and banks, as well as enticing interest rates in decentralized finances attract many new investors. Trading in the in-house tokens of the platforms and the DeFi hype now led to a new all-time high in the trading volume of decentralized exchanges.
One of the best known metrics to measure the popularity of an exchange is the trading volume. Whenever one cryptocurrency is traded against another, it contributes to the trading volume of the exchange. Many centralized exchanges operate so-called “wash trading”, in which the exchange itself trades large amounts in order to appear higher in the ranking.
However, the current development shows that there is no need for a large number of centralized exchanges. A few months ago, the popularity of decentralized exchanges (DEX) has increased significantly. This is also reflected in the volume traded, as the Dune Analytics data shows:
As the graphic shows, all decentralized exchanges have seen enormous growth since the start of the DeFi hype in late May to early June. The total trading volume reached a new all-time high of $472,747,912 in 7 days and is on its way to $500 million. With the current hype about the DeFi tokens, which are mostly based on Ethereum and are mostly traded on decentralized exchanges, this should not take long.
The exchange with the highest trading volume in the last seven days is Uniswap at $165,333,793. In the first week of June, the exchange had a market share of over 30% of all decentralized exchanges, followed by dYdX with 21.62% and IDEX with 16.45%.
Author: Marko Vidrih
Featured image credit: Unsplash
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