Trade volume in DEX continue to soar in September

The rise of volume in decentralized exchange (DEX) continues in the month of September. Month-to-date, DEXs are experiencing a record-breaking number, reporting a trading volume of over $17 billion. It has already surpassed the volumes seen in August, which was $11.6 billion – over 45% growth month-to-date according to data reported in Dune Analytics.

Source: Dune Analytics.

September also saw the DEX space hit another benchmark: surpassing centralized exchange Coinbase in 24-hour volume. According to CoinGecko, both Uniswap and Curve’s last 24-hour volume was higher than Coinbase.

Rank 24-hour volume Exchange Name  Exchange type
1 $2,069,961,420 Binance Spot
2 $566,967,297 Uniswap Decentralized
3 $353,995,080 Curve Decentralized
4 $341,603,139 Coinbase Spot
5 $114,852,466 KuCoin Spot
Table: Data from CoinGecko. The snapshot was taken at GMT+2 23:15 on Sept 19th. Only Ethereum based decentralized exchanges were comparison with Spot exchanges.

Uniswap made up 60% of the total volume in the DEX, followed by Curve with a 27% share.

A year ago, there has always been a talk on the limited trading volumes in decentralized exchanges. However, this year the trend has reversed due to the popularity of yield farming opportunities in these exchanges.

Uniswap allows for trustless token swaps and to maintain high liquidity in its exchange, it incentivizes liquidity providers (yield farmers) to deposit an equivalent value (50-50) of tokens for a trading pair in a pool. As traders trade against this pool, liquidity providers earn trading fees that happen in their pool.

Similarly, Curve protocol has a design for efficient stablecoin swaps. Curve allows users to make high-value stablecoin swaps with relatively low slippage. Liquidity provides add equivalent value stable coins in the pool and earns a portion of trading fees that happen in their pool.

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