Coingecko Quarterly Report Q3 2020: The monthly average DEX trading volumes grew by 197%, outperforming CEXs, which went up 35%
According to Coingecko Quarterly Report Q3 2020, crypto exchanges’ combined transaction volumes grew by $ 155 billion between July and September, from $ 175.7 billion to $ 330.6 billion. The new total volume represents an 88% increase that Coingecko attributed to the DeFi hype, and the frenzy of yield farming peaked in August.
Coingecko report: Traded volumes on DEXs grew much faster than those of CEXs
In the report, Coingecko also observed that since the beginning of Q3, trading volume on DEXs had grown much faster than on centralized exchanges (CEX).
The report stated:
“In Q3, the monthly average dex trading volumes (of top ten DEXs) grew by 197%, outperforming the average volumes of the top ten CEXs, which went up 35%.”
Despite the explosive growth, which also appeared to slow in September, dex volumes account for 6% of total CEX volumes.
Explaining the relatively modest performance of CEXs stated:
“While August proved to be the best after volumes grew by 83%, September trades ultimately reversed the previous month’s gains. CEX volumes dropped from $314.6 billion in August to $300 billion by the end of September. Coinbase and Okex contributed 60% of the reversal.”
Meanwhile, the report also provides data on the performance of individual DEX platforms for the period. As data shows, Uniswap, which contributed just under 50% of the total DEX volume in July, saw its market share rise to 63% by the end of September. Following Uniswap, Curve experienced a quarter of rapid change after its market share initially dropped from 24% in July to 13% in August. However, at the end of September, the Curve recovered after contributes 17% to total DEX volume.
Meanwhile, Sushiswap accounted for 8% of the total volume by the end of September. The rest of the DEX protocols contributed 4% or less to the total volume.
The Coingecko report also provides a timeline of key events that explain the apparent rivalry between Uniswap and Sushiswap. The report highlights that after forking, Sushiswap introduced a new token (SUSHI), distributed via liquidity mining.
Explaining the importance of this move, the report said:
“Unlike Uniswap, which shares 0.3% of trading fees to liquidity providers, Sushiswap shares 0.25% to liquidity providers, with the remaining 0.05% being converted to SUSHI and distributed to SUSHI holders. Mining returns of over 2,000% drew in over $1.4 billion to Sushiswap at its peak.”
On September 18, Uniswap began liquidity mining, and since then, its total-value-locked (TVL) soared to over $ 2 billion by the end of that month. Lastly, the Coingecko report suggested that non-fungible tokens (NFT) farming show signs that they could be the next big thing after DeFi tokens.
BNB earned the most
CoinGecko looked at the top five cryptocurrencies and revealed which earned the most in the third quarter of the year. Binance Coin was also included in the top five, as the USDT price remained constant during the research. And as a result, BNB turned out to be the winner.
According to this research, between July and October, the price of Binance Coin rose 89.5 percent, the Ethereum price by 59.4%, the XRP price by 37.4%, the Bitcoin price by 17.7%, and the Bitcoin Cash price 2.3%.
The Binance Coin price has almost doubled, making many investors happy. But when we compare the top five cryptocurrencies with DeFi tokens, there is a serious difference. Because while cryptocurrencies like Bitcoin gained 17% in value, LEND gained more than 300%, LINK by 110%, and SNX by more than 140%.
- Yearn.Finance Price Ongoing Rebound Is Coming About In Tandem With The Slight Uptick In Price Seen By Bitcoin
- The Ongoing Move Lower In Yearn.Finance Price Comes Despite Strength In The Rest Of The DeFi Market