Decentralized exchanges and aggregators continue to contribute vast amounts of trading volume. Although no one will challenge Uniswap for the top spot yet, overall volumes are rising. The global interest in crypto assets is not diminishing in the slightest, which is a good sign. 

Ongoing Growth Of Decentralized Exchanges

Until a few years ago, no one expected decentralized exchanges to play any role of importance. After all, most cryptocurrency trading occurs on centralized trading platforms, such as Binance, OKEx, Coinbase, and many others. Even though decentralizing the trading aspect is a powerful idea, the blockchain networks powering this industry cannot provide a healthy fee/transaction speed ratio as of yet.

Putting these growing pains aside, there is a significant increase in overall trading volume across the decentralized exchanges. With over $41 billion in trading volume over the past seven days, no one can argue these platforms are gaining momentum. Pushing the boundaries of trading volume and liquidity is essential to remain competitive in this industry. 

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BlocDesk DEXes volume
Source: Dune Analytics

What is even more interesting is how there is a seven-day growth of 22%. Remarkable, considering how all cryptocurrency markets went through a sharp dip just a few days ago. Most people will resort to centralized trading platforms to either sell their holdings or attempt to buy the dip during those times. These days, it appears DEXes can play a crucial role in these proceedings too.

Furthermore, one cannot ignore the importance of aggregators. By combining the liquidity across decentralized exchanges, these aggregators can offer a favorable user experience for newcomers and advanced users alike. The seven-day share in volume of aggregators is 17.4%, more than a respectable figure. Aggregators are a viable addition to the world of decentralized cryptocurrency trading. 

No Competition For Uniswap

As the volume among decentralized exchanges grows, there should be more competition for the top spot. Sadly, that is not the case, as no platform comes even remotely close to Uniswap. Ever since that project rolled out its V3 upgrade, people have been flocking to it even more. An expected development, all things considered, and there is a lot of work to do for platforms aiming to catch up.

BlocDesk DEXes market share
Soruce: Glassnode

SushiSwap, once projected as the “better Uniswap” continues to lose the battle for the top spot. Although it still has more than 1/3rd of Uniswap’s volume, the numbers are not too impressive. What is even more intriguing is how it seems incapable of closing the gap. Although none of its competitors are a threat right now, this is an exciting situation.

For other decentralized exchanges, it is a matter of increasing the overall trading volume. That is easier said than done for most. A lot of these platforms don’t come close to $500 million in weekly volume. Some even have less than $50 million in daily volume, which is far from competitive. Rolling out crucial upgrades and improvements will remain the primary objective.