According to data from Ethereum Dune Analytics, Decentralized exchanges (DEX) on Ethereum have just recorded the highest monthly transaction volume.
DEX on Ethereum just recorded their highest monthly trading volume
Decentralized exchanges (DEX) on Ethereum reached their most top monthly figures on record in February 2020. DEXs have processed more than $ 372 million in transaction volume, 62% higher since January 2020. February volume surpassed the previous all-time high of $ 358M in July 2019. in 2019, over $2.3 billion in trading volume were recorded on Ethereum-based decentralized exchanges.
Monthly DEX volume and ETH price | Source: Duneanalytics
Notably, the growth of trading volume is correlated with the increase in ETH prices. In February 2020, ETH/USD increased by 15%. This figure is nearly 73% higher from the beginning of the year.
February is DEX’s all-time highest month on Ethereum, with $ 372 million traded! Slightly beat the previous record from November. We can also see that DEX volume is highly correlated with ETH price.
Over the past 24 hours, DEXs recorded a value of over $ 16 million, representing only a tiny fraction of the total cryptocurrency trading volume ($ 247 billion at the time of writing). However, this number has increased steadily with 7-day growth lasting 21%.
The fast-growing decentralized finance sector mostly limited to dApps running on Ethereum
Looking beyond Ethereum, crypto interoperability is key | Photography Image
Although DeFi Pulse has not yet ranked each active DeFi dApp, a glance at the rankings shows that ETH dApps dominate.
This dependence on Ethereum is one of the most critical vulnerabilities of DeFi. The network is slow, and thanks to stablecoin transactions taking up most of the bandwidth, it is easily congested. However, the challenge for DeFi developers working on other blockchains is that they do not have the same user base and adoption that Ethereum can be proud of.
Interoperability is the key to unlocking DeFi beyond the Ethereum Blockchain. DeFi dApps can operate on multiple platforms offering the potential to create a thriving ecosystem across the Blockchain space. It also means that developers can take advantage of the speed and flexibility of other blockchains while continuing to participate in the vibrant DeFi community.
Since the start of 2020, KNC made almost 400% price increase
Several interoperable protocols and dApps currently exist, and we can expect more. But not all try to achieve the same thing.
Kyber Network seems quite familiar to people in the DeFi space as an Ethereum-based liquidity protocol. However, the team at Kyber has also implemented their swap protocol on other blockchains, including EOS and TomoChain.
However, Kyber Waterloo’s proposal seems to be the project’s most promising breakthrough for true interoperability. Currently, at the concept proofing stage, Kyber Waterloo aims to allow tokens to be swapped between Ethereum and EOS networks.
Kyber claims that the upgrade will bring greater liquidity and volume across the entire Kyber network, allowing projects to use Kyber as an endpoint on the chain that best suits their needs.
One of the essential improvements in Katalystal’s upgrade will be the option for users to place some of their KNC tokens to earn interest. The mechanism known as Google’s betting mechanism uses tokens to authenticate transactions. Additionally, staking will reduce the number of unallocated KNC tokens, which will improve their market value.
The other significant overhaul includes the implementation of Kyber’s native Decentralized Autonomous Organization (DAO), dubbed KyberDAO. The algorithm will allow users to gain administrative rights over the network, allowing users to bring essential network discussions and gain broad consensus. Decisions can include from the list of tokens on the Kyber exchange, fair use of fees collected, as well as funding approvals.
Meanwhile, Kyber’s native KNC token made a significant start of 2020, with the token recording close to a 400% price increase as of press time. On January 1, 2020, one KNC token exchanged for $ 0.18. Currently, KNC’s price reached $ 0.72, with a high of $ 0.97.
Source: CoinMarketCap
While much of DeFi’s activity is happening on Ethereum, it’s foolish to think that innovation doesn’t happen elsewhere. Interoperability helps solve this by providing a common ground that all blockchains can communicate.
Opening this dialogue will be a bonus not only for cryptocurrency users but also for Ethereum itself.
Read more:
- Ethereum Teams Discussed The Upgrade Of Network Consensus Mechanisms, Looks Like The Ethereum Foundation Has To Make Uneasy Step
- Ethereum Still Moves In Tandem With Bitcoin, But Will ETH Price Fall Even Deeper?