Can You Still Make Money With Decentralized Exchanges?

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CryptoMode Weekly DEX Metrics Make Money Decentralized Exchanges

Everyone in the cryptocurrency industry wants to make money. Some prefer a passive approach, whereas others don’t mind getting their hands dirty. It is possible to make money with decentralized exchanges as long as their revenue remains on the high end of the spectrum. 

Make Money With Decentralized Exchanges

Unlike a traditional centralized exchange, DEXes provide numerous revenue-generating opportunities for users. It remains possible to buy and sell currencies and tokens for a profit, although that isn’t necessarily the primary objective here. Users looking to make money with decentralized exchanges can explore other options to achieve that goal.

The most obvious option is becoming a liquidity provider. Users submit crypto assets to the DEX of their choice and put them into a pool with other users. Doing so will award liquidity providers with a share of trading fee revenue. It is a straightforward way to make money with decentralized exchanges and doesn’t require too much maintenance.

However, decentralized exchanges like Uniswap keep pushing the boundaries on this front. Users can opt for a passive position at reduced earnings or constantly adjust their liquidity “range” to maximize returns. It creates a solution that works for everyone, although many people oppose this new model too. Pleasing everyone is virtually impossible these days, certainly when people want to make money with decentralized exchanges. 

Several platforms offer other functionality to make money with decentralized exchanges. Whether it is staking, lotteries, NFT support, or otherwise, one must carefully weigh all options before making commitments. 

Revenue Generation Is Crucial

While figuring out which DEX to use, it is crucial to look at their monthly revenue. Higher revenue means more chances to make money with decentralized exchanges. Uniswap – V2 and V3 combined – remains the industry leader and is well ahead of PancakeSwap, dYdX, and SushiSwap. Interestingly, Both Uniswap and PancakeSwap increased their monthly revenue by a significant margin last month. 

Source: CryptoRank

Other platforms noting solid growth are Trader Joe, SpookySwap, Curve, Balancer, Pangolin, and QuickSwap. The only prominent DEX losing revenue is SushiSwap, which dropped to $45.2 million. It is intriguing to see how these different platforms perform over time and whether they can sustain themselves. Competition keeps heating up, which will introduce more ways to make money with decentralized exchanges. 


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