Trading volume on decentralized exchanges reached a historic high

Decentralized finance (DeFi) has broken a new record. The ratio of spot trading volume to decentralized exchanges (DEX)Decentralized exchange (DEX, decentralized exchange) — a place where trading takes place on the principle of P2P networks, i.e. directly between participants. to centralized exchanges (CEX) reached an all-time high of almost 27%.

This data shows a sharp jump from 0.36% in June 2020 to the current 27.92%. That is, over the past 5 years, the ratio of decentralized to centralized exchanges has been steadily increasing, and DEX has now shown a 77-fold jump. This trend has become particularly noticeable in recent months.

The emergence of a wide range of tokens has been a significant contributing factor. Decentralized exchanges are quicker to list exclusive and newer tokens than centralized exchanges, which usually apply strict listing requirements. DEXs provide consumers with early access to unique projects. In addition, Web3 projects often issue their tokens on DEXs before expanding to larger centralized structures.

The 77-fold increase in popularity over the past 5 years has also forced DEX to improve the user experience. For example, interfaces, compatibility with multiple blockchains, integration with leading wallets such as Coinbase Wallet and MetaMask Wallet, and lower slippageOccurs when the buy or sell price differs from the actual execution price of an order due to lack of liquidity or rapid changes in the market..

Source: CryptoRank