DEX volumes see new all time highs - up 70% month over month

in #hive-167922last month

Everyone knew that DEX's would soon take over, perhaps it is happening sooner than we thought?

According to data from dune analytics (https://www.duneanalytics.com/), June set a new all time high in terms of DEX trading volumes.

By the way, for you new crypto investors out there "DEX" stands for Decentralized Exchange.

It's simply a way for users to trade without having to go through a trusted 3rd party.

And as we have been speculating for years, their popularity keeps growing and growing and growing.

June saw the highest volume totals ever, recording $1.52 billion in trading volume:

(Source: https://www.duneanalytics.com/)

Why are DEX's increasing in popularity?

I suspect this recent all time high in trading volume will end up just being a blip on the radar as volumes continue to climb higher and higher and higher.

To really understand why I think that, we need to fully understand why DEXs might appeal to people in the first place.

Here's a good breakdown of the differences between a traditional centralized exchange and a DEX:

(Source: https://www.cryptocompare.com/exchanges/guides/what-is-a-decentralized-exchange/)

With all the government cracks downs over the last several years as well as the large hacking scandals that have taken places at exchanges and it is easy to see why DEXs might be appealing.

However, their most appealing feature really has do with their fundamental differences.

One of the mean reasons crypto was created in the first place was to fill a need of trustless transactions.

Doing transactions with people without having to trust a 3rd party.

When you deposit money on a centralized exchange you give up one of the most important features of cryptocurrency.

You are at the mercy of the exchange to give you your coins back when you would to transfer them, and as we have seen numerous times, it doesn't always work out in the customers favor.

It's not all rainbows and puppy dogs though...

There are good reasons people continue to flock to centralized exchanges, some of which can be seen here...

(Source: https://www.cryptocompare.com/exchanges/guides/what-is-a-decentralized-exchange/)

Given the fact that most centralized exchanges aren't that much easier to use for new crypto investors than a DEX, I would say the biggest reason that DEXs haven't caught on more is the final point there.

A lack of liquidity.

It's kind of a chicken and the egg dilema...

Investors want to use DEXs but they need liquidity to do so, however, DEXs can't really have liquidity if investors don't use them...

See the dilemma there?

Well, with the volumes continuing to explode like they are and automated market makers starting to take the decentralized exchange world by storm, I think we are going to see more and more users make their way over.

It will be interesting to see how governments respond when the mass migration really starts to take place as centralized exchanges are their best tool for keeping tabs on cryptocurrency users.

Stay informed my friends.

-Doc

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DEXes are great, im using BTSbased DEXes for years now. Major problem is liquidity... but this grows is offering more liquidity for all of us! Great.

Yep I have used that one as well. I don't use them much primarily because there just isn't enough liquidity to move in and out easily. I haven't checked out these extremely popular ones yet though.

Do you have any DEX's you can recommend with quite a few trading pairs? BTC/USD, HIVE/ USD and HIVE/BTC at least?

Unfortunately I do not. I haven't used many outside of bitshares, which I have used on a number of occasions. The times I have checked most of them out, I haven't been impressed with the liquidity enough to give them a try. These larger ones listed in the post are probably the ones be trying if you want to give it a go.

Ousting is more likely to be the eventual result. Goverment will begin to oust people who use crypto, maybe, just maybe

Oust in what way?