DeFi hype: trading volume on decentralized exchanges reaches all-time high

Everyone is talking about DeFi at the moment. 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.

Increasing popularity of decentralized exchanges (DEX)

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. For 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 USD. 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 USD. In the first week of June, the stock exchange had a market share of over 30% of all decentralized exchanges, followed by dYdX with 21,62% and IDEX with 16,45%.

Enormous increase compared to 2019

The increasing popularity of decentralized exchanges is particularly evident when you compare the trading volume with 2019. The trading volume in June 20109 was $ 325 million, in June 2020 it was close to $ 1,4 billion before the end of the month. An increase of more than 400%. The graphic shows the comparison of the individual months from 2019 (blue bars) with 2020 (red bars):

Not only the decentralized exchanges are happy about the increase in trading volume, but also investors who invest in the in-house tokens of the exchanges. Because these record enormous price gains and develop significantly better than the tokens of centralized exchanges. A few weeks ago, we summarized all the details of the tokens and their development for you in the following article:

Decentralized exchanges on the rise: DEX tokens with profits five times higher than CEX tokens


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