Dex Volumes Plummet 37% After May
The trading volumes of decentralized exchanges (dex) have experienced a whole lot of decline in the previous four months. In March, the highest volume of dex trades for the year was recorded at $112 billion. Nonetheless, in April, the volumes dropped by 47.26% to $59.06 billion.
May witnessed a slight increase of 12.59%, with trade volumes growing to $66.5 billion. Out of this amount, Uniswap’s dex trades contributed $33.67 billion. Since May, dex trade volume has been on a downward trend, experiencing a decline of 37.29%.
In August, the total dex trade volume was $41.7 billion, with Uniswap accounting for $24.87 Billion (59.64%). Pancakeswap and Curve Finance likewise made whole lot of contributions with $6.76 Billion and $3.79 billion, respectively.
These 3 dex protocols constituted 84.94% of the worldwide dex volumes in August, totaling $35.42 billion. Despite the fact that September is not yet over, its dex volumes have been lackluster so far.
As of September 18, 2023, the worldwide dex trade volume stands at $16.96 Billion according to The Block. Uniswap trades contribute approximately $10.27 Billion to this total, followed by PancakeSwap with about $3.14 Billion and Curve with $1.07 billion.
Probable Decline in September
With only 12 days left in September, it is possible that dex trade volumes will fall below the numbers seen in August. This decline in volume is further emphasized in a monthly cryptocurrency recap report by digital asset manager Vaneck. The report outlines a decrease in onchain economic activity related to decentralized finance (defi) in August.
“Decentralized exchange volume experienced a more severe decline,” noted Matthew Sigel, Vaneck’s Head of Digital Assets Research.
Hot Take: Dex Volumes Face Ongoing Challenges
The whole lot of decline in dex trade volumes since May raises concerns about the sustainability and attractiveness of decentralized exchanges. The decrease in trading activity could be attributed to numerous factors, including market conditions, regulatory uncertainties, and the emergence of alternative platforms.
To revive and maintain growth in dex volumes, it is critical for the industry to address these challenges and provide users with enhanced liquidity, improved user experience, and increased security measures. Only by addressing these matters can dex platforms regain momentum and continue to play a whole lot of role in the evolving landscape of digital currency trading.
Benito Cormi, the brilliant crypto analyst who has made waves in the world of cryptocurrency. With his razor-sharp analytical skills and deep understanding of the digital asset landscape, Benito has become a trusted figure in the industry and remains at the forefront, tirelessly researching and analyzing market trends to help individuals and businesses make informed decisions in this dynamic landscape.