Surging volume in DeFi exchanges shows great potential of the sector

Decentralized exchanges (DEXs) are on its rise. Compared to its centralized counterparts, their earnings, number of transactions or total volume are still incredibly small, however, the trend when it comes to adoption and usability of DEXs is more than visible. Significant rise, mainly in the volume and in the earnings can be visible due to the change that the year 2020 brought to the sector. Whether it is connected to pandemic, unprecedented central bank policies, riots all around the world or other factors, one thing obvious. DEXs are becoming more popular every single day.

Rising volume on DEXs

For instance, Ethereum´s DEXs traded over 3 billion dollars in combined volume in the first 5 months of the year 2020. In the previous year, their traded total volume was 2.4 billion dollars in 12 months already showing signs of rapidly increasing volume. Moreover, in January, the cumulative weekly volumes for major DEXs averaged around 61 million dollars, however, by the end of March, the cumulative weekly average of volumes on major decentralized exchanges was over 193 million dollars. This shows an impressive 213% increase in a period of 10 weeks.

What is more impressive is the volume that was registered around Black Thursday. During this period of time, when most of the cryptocurrencies almost halved in value, while other assets showed double digit losses, DEXs have seen the biggest weekly volume in their short history. The aggregated weekly trading volume peaked around 400 million dollars for major DEXs in this week alone. Even though the weekly volume was not even close to those number in April or May, it was still higher than the weeks preceding the Black Thursday (weekly average around 184 million dollars).

Uniswap, Kyber and dYdX as market leaders

As the picture above shows, Uniswap is a clear winner in the DEX sector as of now. In this year alone, the liquidity protocol has seen more than 755 million dollars in trading volume, which is highest in the sector. Other popular DEXs, which have also seen rising volumes are Kyber, dYdX and 0x. These 4 exchanges create the major part of the whole market. Nevertheless, the number of successful decentralized exchanges is on a rise, which is great sign for the diversity and competition within the DEXs.

Why should anyone care?

Even though the CEX have incomparably higher earnings that DEX, it is DEX that have great advantage in the fact that they are open, permissionless and transparent operations. Therefore, they are available to anyone, who has internet connection on any device. Moreover, for most of DEXs there is no KYC, which gives them great advantage over CEX. That is only one of the reasons, why the DEXs have huge growth potential. All of these exchanges are not only transparent and open, but also can help anyone with creating great trading opportunities.

Since DEPCO has experience in this sector and in usage of DEX exchanges such as Uniswap, Kyberswap or Curve, the project will help anyone with the entrance into the sector. Therefore, anyone can not only benefit from the guidance of our successful traders, but also follow their advices on the way of becoming an expert in the field of Decentralized Finance. The investment potential in this sector must be more than visible to anyone, who follows the rising trend of DEX and with the help of DEPCO, anyone can be a part of it.

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