Decrease in Dex Trade Volumes by 37% Since May; Anticipating Further Decline in September

Decrease in Dex Trade Volumes by 37% Since May; Anticipating Further Decline in September

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.

CoinEx Restarts Deposits and Withdrawals Following Security Breach

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.

Algorand Foundation and AWS Collaborate to Launch Build-A-Bull Hackathon

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.

Understanding the Mechanics Behind Wrapped Beacon ETH

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.

OKX Attains SOC 2 Type II Certification, Showcasing Industry-Leading User Safety, Security, and Compliance Measures
Author – Contributor at | Website

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.

Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

Follow us

Latest Crypto News

Share via
Share via
Send this to a friend