Decentralized exchanges, or DEXes, have become of great interest to cryptocurrency users as of late, Not having to rely on middlemen to swap between different currencies is very appealing. What is even more remarkable is how the volume of these decentralized platforms continue to grow in spectacular fashion.
DEXes Continue to Gain Volume
There is no lack of competition among decentralized exchanges today. In fact, there are well over a dozen platforms capable of facilitating such traders. Not all of these ventures are successful, unfortunately, but that is to be expected. Each project needs to offer something its competitors cannot. A very tough challenge, but it certainly can be done.
Judging by the current overall volume statistics, as provided by Dose of DeFi, Uniswap remains the undisputed king. It represents 66.3% of the entire volume generated by the top DEXes. That in itself is not something most people hadn’t expected. However, it shows that over 33.5% of the volume can be found elsewhere. It is this gap that will prove crucial for current and future DEXes.
The way things stand right now, Curve is the leader among “the best of the rest” DEXes. It has 11% of the volume, putting it well ahead of 0x at 7% and SushiSwap at 6.7%. Balancer, DODO, Kyber, Swerve, dYdX, Mooniswap, and Bancor Network all rank in the top 10 as well.
What is interesting when looking at this list is how “early” DEXes have seemingly fallen behind the curve, The likes of Oasis, IDEX, DDEX, and Gnosis Protocol aren’t even in the top 10. Of the ones mentioned earlier, Kyber is giving up a lot of growth as well. The newer platforms all offer something more exciting and innovative.
Liquidity Farming Remains Popular
Based on these rankings, the platforms providing liquidity farming options seem to attract a lot of volume. A lot of people own cryptocurrency and want to put it to good use. Through Ethereum, as well as several stablecoins, it is possible to provide ample liquidity to DEXes. Earning a fee for every trade in that liquidity pool can yield passive revenue over time. Speaking of revenue through total fees paid, Uniswap remains the dominant force in this segment as well.
SushiSwap has quickly risen to second place, outranking Balancer by nearly $15 million. With interest in SushiSwap seemingly dwindling, however, it remains to be seen if this trend can continue. Overall trading volume and liquidity have dropped off by quite a margin. An unfortunate turn of events, as the concept still has merit. It was somewhat doomed when the initial creator decided to cash out his developer fund, however.