DEXs saw a 15% increase in trading activity this week.
According to data from the DeFi platform Llama, trading activity on DEXs in the DeFi ecosystem has increased by 15% this week, reaching a combined trading volume of $ 22.700 million dollars.
The majority of this trading volume is recorded on Uniswap, the largest decentralized exchange in the DeFi ecosystem.
According to the data consulted on the platform, Uniswap has processed transactions in the order of $12.430 billion this week, being the third version of the protocol, Uniswap V3, where most of the DEX operations have been processed.
Source: DeFi Llama
Compared to centralized exchanges, DEXs currently maintain a 4,8% dominance over the volume traded in the market.
The crypto investor known as Crypto Rand highlighted that DEXs are benefiting from the increasing regulatory scrutiny that agencies like the SEC and New York's DFS are imposing on centralized companies in the crypto industry. Other experts also believe that the measures imposed by regulators on crypto companies will cause more users to move towards decentralized protocols and tools to carry out its operations without the intervention of third parties or intermediaries.
In this regard, this same week the regulation of cryptocurrencies has intensified with the lawsuit imposed by the SEC against Kraken and its staking platform, in addition to the DFS lawsuit on Paxos and the ban on the issuance of the BUSD stablecoin, the third largest stablecoin on the market, in the United States.
AMM DEXs lead the market
The decentralized exchange protocols that record the highest trading volume are AMM DEXs or Automated Market Makers.
Uniswap, based on the Ethereum blockchain, and PancakeSwap, on the BNB Chain, are the two main AMM DEXs that concentrate the largest volume of token exchange operations this week. On the other hand, Curve Finance, a protocol designed for the exchange of stablecoins on Ethereum, ranks third with more than $1.630 billion in trading volume.
Source: DeFi Llama
Another crypto industry analysis platform, Dune Analytics, shows that Uniswap leads the DEX market share, processing more than 71% of its recorded weekly volume.
What are DEXs?
Decentralized exchanges or DEXs are platforms where users can exchange their tokens without giving up custody of their assets to a trusted third party. These platforms, which work through smart contracts, have become a fundamental pillar of the decentralized finance (DeFi) ecosystem, allowing millions of people to participate freely and without permission.
Although much is said about this type of platforms, including that they facilitate illicit activities due to their level of decentralization and high degree of anonymity, DEXs guarantee a higher level of transparency compared to their centralized counterparts.
Almost 6 million users on DEXs
Although cryptocurrencies had a very eventful 2022, investor interest remained intact and DeFi continued to gain in number of users.
Currently, the Dune Analytics analytics platform records 5,94 million users only assets on DEXs, which represents an increase of 38% in relation to the number of unique active users that existed in this financial ecosystem in January of last year.
Source: Dune Analytics
The data shown above exposes the growing popularity that DEXs have gained in the crypto and blockchain ecosystem.
Continue reading: SushiSwap sets new goals to revitalize its protocol and lead DeFi
