When it comes to decentralized exchanges and trading protocols, there is plenty of competition. Everyone knows Uniswap will be tough to dethrone, yet it appears some platforms note substantial growth. With the daily unique addresses and TX volume on the rise, an interesting era dawns upon the industry.
Daily Unique Addresses For Decentralized Exchanges
As there are now over a dozen viable decentralized exchanges and trading platforms to contend with, one has to wonder who will come out on top. Uniswap remains the dominant force for the time being, but Sushiswap isn’t too far behind. Further down the list, many players are competing for their share of the spoils, which may not necessarily come easy.
Projects such as Mooniswap, Synthetix, LINKSWAp Balancer, Loopring, and others all have to try and attract users to remain relevant. When comparing the number of daily unique transaction addresses for these decentralized exchanges, it becomes apparent there is some growth. Following the two industry giants, 0x and Balancer appear to note this metric’s biggest market share.
Curve, Bancor Network, Kyber, LINKSWAP, Mooniswap, and Synthetix are all trying to hold their own in this segment. They remain ahead of challengers like Oasis, Loopring, DDEX, dYdX, and so forth. It remains a bit odd to see how some of the earliest DEX projects are now disappearing into obscurity for some reason.
Moreover, this further illustrates that smaller decentralized exchanges are still fighting for survival. Although many traders for Uniswap and Sushiswap, one cannot overlook the other options. This industry can only thrive through strong competition and empowering users by offering multiple options. Getting those users to experiment with these other DEXes will be the main issue to address.
Diversifying Liquidity Is Necessary
Although the number of daily unique TX addresses is an intriguing statistic, it is only part of the bigger story. Another crucial facet is determining the daily USD volume for all transactions. No one will be surprised to learn that Uniswap and Sushiswap lead the pack by a large margin. More specifically, these two decentralized exchanges combine for 79.5% of all the trading volume.
The remainder of the trading is distributed well among the other platforms. Balancer, Curve, and 0x all try to do their part, noting some decent overall volume in the process. It is not too shocking to see two of the most popular DeFi options in this list, as they are both well-respected in the industry.
One has to wonder what it will take for users to give other platforms a try. There is much to like about some of the other DEXes in the industry today. However, with the other options receiving much more media attention, it is likely that few people even know about dYdX, Loopring, or Oasis, for example. Changing this narrative remains a significant struggle.