Trading output on decentralized exchanges surged amid a boom in interest in DeFi and surpassed $10 billion in August.
According to Dune Analytics provided data, DEX trading volumes in the month of August 2020 surged more than double those in July the same year and quadrupled those for all of 2019.
The total number of DeFi users is approaching 400,000 and Ethereum-based DEX Uniswap has become the dominant platform, accounting for 57% of users. At the same time, trading volumes on the Uniswap decentralized exchange continue to grow – on August 30, they exceeded $500 million, and this is significantly more than the same indicator on the traditional cryptocurrency exchange Coinbase Pro.
Unlike its centralized counterparts, the decentralized exchange DEX uses smart contracts and blockchain transactions to conduct transactions. They give users the opportunity to avoid KYC checks and provide the ability to store their assets on their own. Meanwhile, “liquidity providers” on the DEX are rewarded with transaction fees.
These benefits have led to a significant spike in the popularity of DeFi apps and tokens alongside the use of DEX. More and more users are placing crypto assets in DeFi apps and using them to create liquidity or generate interest income through the judicious use of DeFi tools. DeFi Pulse: DeFi Blocked Crypto Assets Already Exceeded $9 Billion.
