Decentralized exchanges are the future of the cryptocurrency industry. Centralized platforms take control of user funds, which is far from ideal. Based on the current DEX sentiment and volume, things seem to be moving in the right direction, for the most part.
Sustaining DEX Trading Volume
When any new industry tries to gain traction, sustaining growth needs to become a top priority. Adding more competition to the industry can also do wonders. As far as DEXes are concerned, the number of different offerings remains somewhat limited. That is entirely to be expected, given how new the industry and business model still is.
As of right now, the DEXes combine for over $403.5 million in weekly trading volume, That may seem insignificant when compared to centralized trading volumes. After all, Binance alone generates nearly $1.25 billion in daily volume on its own. That will not remain the case, however.
Unlike a centralized exchange, a DEX puts the end user in full control. It is possible to trade currencies directly from one’s wallet, without having to deposit or withdraw to a third party.
Given how most platforms also support hardware wallets, DEXes are superior in terms of privacy and security. It is seemingly a matter of time until these projects gain more traction.
The top 3 DEXes Right now
Looking at all of the analytics provided by Dune Analytics, it is evident that Uniswap remains the top dog. It generates the most trading volume in 24 hours, has the highest overall volume for the past week, and keeps increasing its overall market share.
At the same time, it is trailing competitors in one crucial aspect. Attracting unique addresses used for trading has been a bit of a challenge. In fact, Uniswap only comes in third place right now, which is a bit surprising. This is why it is crucial to keep close tabs on all DEX statistics.
Although Curve wasn’t launched all that long ago, it notes strong growth in the decentralized trading segment. Coming in second in terms of daily and 7-day volume is very impressive at this stage. It also notes 17% of the DEX industry volume overall, ensuring that it remains well ahead of other competitors.
In terms of unique addresses used, it has a similar issue compared to Uniswap. It is still ranked 4th overall, but just 801 unique traders were recorded over the past 7 days. Ensuring newcomers find their way to Curve will remain an ongoing challenge.
As mentioned in last week’s DeFi report, Balancer was making some pretty big waves all of a sudden. This is apparent when looking at its weekly DEX volume, which has climbed to nearly $60 million. Although this is just 8.4% market share – and lower than Kyber’s – the project is seemingly climbing the ranks very quickly.
In terms of unique trading addresses, however, there is still ample of work to be done. Just 30 unique addresses have been used over the past 7 days, which is not too impressive by any means. This is one aspect the Balancer team will need to address moving forward.