Skip to content

In the third quarter before the DeFi boom in October, DEX volumes pumped over 1,000%

November 9, 2020

The trading volume on decentralized exchanges (DEX) reached $ 42.6 billion in the third quarter of 2020. According to a recent industry report from TokenInsight, this is a 1,132% increase over the previous quarter.

But still, In October, the numbers fell slightly from September highs as Bitcoin (BTC) prices began to rise and traded attention regained after the surge in decentralized fundingor DeFi from the previous months.

In July alone, the volume reached $ 5 billion, a third more than in the second quarter.. The monthly volume continued to grow in the third quarter, showing an average monthly increase of more than 140%.

In the third quarter before the DeFi boom in October, DEX volumes pumped over 1,000%
In the third quarter before the DeFi boom in October, DEX volumes pumped over 1,000%

The volume ratio among a growing number of competing DEXs was still fairly concentrated;; For example, up to 50% of transactions came from UniSwap and almost three quarters from the three major exchanges.

But still, Eight decentralized exchanges achieved a trading volume of over 1 billion US dollars in the third quarter, after zero in the previous quarter.

One of the drivers the report raises for this volume increase is the “wealth effect” of the DEX.who have opened a “market between primary and secondary market”.

According to TokenInsight This can give the average user access to high quality projects before they get into secondary marketsand was mostly seen during the DEX madness.

Furthermore, The rise of DEX changes the relationship between token projects and central exchanges. Previously, this was heavily skewed in favor of exchanges that could charge high fees for listing tokens.

DEX provides a market outside of that market where projects can thrive without the need for centralized support from a central exchange.

But still, Even with reported increases in DEX trading volume in the third quarter, they account for only 1.24% of total spot market transactions over that period.

Don’t stop reading: