Decentralized exchanges are booming in 2020, capturing more than $420 million in volume in the last 24 hours
Decentralized exchanges appear to be overgrowing on their centralized counterparts. Based on statistical data from Dune Analytics, DEXs processed more than $ 420 million in transaction volume over the past 24 hours – a 20 percent increase over the previous week.
Decentralized exchanges are booming in 2020, raking in more than $ 420 million in volume in just 24 hours
The Ethereum DEX volume saw growth of over $ 4.4 billion traded in July, with over $ 3.1 billion being seized in less than half a month of August. $ 420 million in a single day is quite a lot, especially when compared to the DEX figures for the whole month in June 2019 (only about $ 300 million). And $ 4.4 billion for July this year more than decentralized exchanges have generated for the whole of 2020 through June.
Source: Dune Analytics
The figures prove that decentralized financial applications are holding, providing unique trading experiences and strategies for users, even in the face of unusual transaction fees on the Ethereum network.
Decentralized exchanges use smart contracts, allowing users to swap tokens using reserve tokens locked in the protocol by liquidity providers. Swap tokens are performed directly on the Ethereum Blockchain, allowing users to avoid obstacles from the KYC verification process and other barriers.
A few decentralized exchanges, like 0x, have been around since 2017, but the lingering hangover after the ICO craze has made the protocol less accepted. Values under $ 3 billion were traded on decentralized exchanges in 2019; 2020 has seen more than four times that amount change hands, namely about $ 13.5 billion and continue to increase.
By far, the most popular decentralized exchange is still Uniswap – which was upgraded to V2 in May 2020. Uniswap reached a volume of more than $ 1.7 billion in July and over $ 1, 5 billion in August. The exchange regularly provides more than 50% of the total DEX volume, accounting for 57%, or $ 246 million in the last 24 hours.
Another DEX that is growing in popularity is Curve Finance, which is used to swap tokens between stablecoins. With an increasing level of interest and trading volume, Curve Finance has issued a CRV governance token, which accounts for over 15% and $ 67 million in volume terms over the past 24 hours.
In particular, Balancer, a relatively early participant in the context of issuing governance tokens (BAL), is also a fierce competitor in terms of transaction volume. The Balancer has raked in over 11% of volume in the past 24 hours, worth almost $ 50 million.
Decentralized exchanges have a long way to go before they overtake centralized counterparts like Binance, with 24-hour trading volumes reaching $ 4 billion. But with the rapid pace of development, crypto users can switch to the first DEX approach to trading earlier than some might think.