Decentralized exchanges, or DEXes, continue to play a key role in the broader crypto ecosystem. Users can conveniently swap and convert between assets without accounts and trusting third parties. With over $14 billion in the past week, these trading platforms continue to make their mark on the industry.
DEXes Are Still Going Strong
Even though the current crypto market conditions are more bearish than people would like, there is a keen interest in portfolio diversification. That includes trading assets on centralized and decentralized exchanges. As prices continue to drift lower, there are some good discounts to take advantage of for those willing to take a few risks. DEXes have a much broader “convertibility” than centralized platforms, contributing to their overall volume growth.
This past week, the various decentralized exchanges generated over $14 billion in trading volume. That may seem small compared to centralized platforms, but it is a big step in the right direction. Moreover, the aggregator solutions contributed nearly $3 billion, further highlighting their importance in this industry. Aggregators will source liquidity from multiple platforms to ensure users get the best conversion rate between assets.
Despite these prominent statistics, DEXes have begun losing some traction again. Their weekly growth is -28%, indicating last week was very bullish for these decentralized platforms. However, as markets keep falling and there is much attention on the upcoming $LUAN distribution, centralized platforms will regain some of their market shares again. That doesn’t mean DEXes won’t thrive, though, as there will always be a demand for non-custodial trading.
Moreover, one would expect more people to look into non-custodial solutions. Coinbase’s recent announcement of not segregating customer and company funds has put many people on high alert. A decentralized platform cannot access user funds directly, making for a superior trading solution. It is a matter of time until more people realize these centralized platforms should only be used as onramps and offramps for crypto, but nothing more.
Uniswap Is Still In The Lead
No one will be surprised to learn how Uniswap is still the dominant DEX, both in weekly and 24-hour volume. It is impressive to see the platform note nearly $10 billion in weekly volume, even though it runs on Ethereum. Unlike other blockchains and Layer-2 solutions, Ethereum remains very expensive to use, yet Uniswap users are seemingly not too bothered.
Curve holds on to second place and is the only other DEX to note over $500 million in weekly volume. That is rather surprising, as one would expect these DEXes to be on a more even footing with one another.Curve’s weekly volume of nearly $2.3 billion is significant, and its daily volume is almost the same as what Balancer and Sushiswap generate every week.
Speaking of which, Sushiswap has seemingly fallen on hard times. Its overall volume has dropped off significantly and shows little or no way of improving anytime soon. The same goes for Balancer, 9x Native, and 1Inch. Although there are all prominent platforms, they have seemingly lost tremendous ground in this race for DEX supremacy.
Interestingly, 1Inch is the top aggregator across decentralized exchanges, with over $2 billion in weekly volume. That puts it far ahead of 0x API and Matcha, with Paraswap and Gnosis Protocol even further behind. There is still plenty of room for competition among aggregators and decentralized exchanges, although it may prove challenging to go up against the established market participants.
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