The positive movement came amid the growing market interest in DeFi.
The trading volumes of digital asset exchanges (DEX) continue to grow. In September, the indicator updated its absolute maximum near the level of $ 14.9 billion. For comparison, on August 20, the DEX trading volume was $ 11.6 billion. At the same time, a year ago, in September 2019, the indicator was at the level of $ 281 million. Thus, the annual growth of the DEX trading volume amounted to 5200%.
Data: The Block
The first burst of growth in indicators was recorded in June 2020. During each subsequent month, the trading volumes of the decentralized exchanges updated their maximum. It is noteworthy that DEX indicators showed a positive movement against the background of the growing interest of market participants in profitable farming.
The task of crypto farmers is to earn as much as possible on investments in projects from the decentralized finance (DeFi) sector. To place the tokens of such startups, many representatives of the latter chose the Uniswap exchange. The active growth in trading volumes of the platform occurred at the time of the positive movement of indicators on the DEX market.
DEX market shares. Data: The Block
By September, Uniswap had a 66% share of the decentralized exchange market. Recall that recently the site has a competitor in the crypto space – SushiSwap. The platform team launched its own decentralized exchange and migrated its tokens to it. Many projects have followed SushiSwap’s example. As a result, Uniswap lost about 75% of its liquidity.
One of the reasons for the migration of projects to SushiSwap was the startup’s own token. Amid the loss of liquidity, the Uniswap team decided to keep up with the competitor and launched its own cryptocurrency – UNI. The interest of market participants in the token caused congestion in the Ethereum network (the project is built on the ETH blockchain).
Despite the success of DEX, decentralized exchanges still fall behind their centralized competitors in trading volumes. For example, on the most popular spot market platform – Binance – has a total daily volume of deals worth $ 7.2 billion.