This year, the trading volume of decentralized exchanges (dex) has become extremely prominent and some of the applications have been experiencing volumes that are at par with some of the centralized crypto exchanges. In the last week, decentralized platforms based on Ethereum have processed transactions worth $21 billion and 71% of all Ethereum-based dex apps were captured by Uniswap. According to recently updated metrics and the statistics published by The Block Research, the total trading volume of dex platforms throughout the year has been in excess of $1 trillion. This is an indication that there has been a significant amount of growth in the world of decentralized finance (defi) in 2021.
With the year coming to an end, there is more than $250 billion worth total value locked in decentralized finance protocols. According to metrics, amongst all the defi applications that exist today, it is Uniswap that’s leading the pack because it commands the highest trading volume in 24-hours, which is around $1.45 billion today. Data also indicates that the total value locked (TVL) on the Uniswap platform is around $8.81 billion, which is just lower than that of Curve Finance, valued at $22.36 billion. As far as 24 dex leaders are concerned, Pancakeswap comes after Uniswap with a 24-hour trading volume of $848 million.
Then comes Trader Joe’s 24-hour trading volume at $453.7 million, Curve at $453.1 million, Sushiswap at $401 million, Uniswap v2 at $380 million and lastly Spookyswap at $185 million. The Block Research had published its 150-page report just recently, which covers the ‘2022 Digital Asset Outlook’. This research highlights the trading volumes of both centralized as well as decentralized exchanges.
For instance, Larry Cermak, blockcrypto.com’s vice president of research, said on December 16th that the legitimate volume index of the Block, which is the spot volume, will be in excess of $14.5 trillion in 2021. This is around 8 times larger than the volume seen in the previous year. According to a report by Yogita Khatri and statistics from the study indicate that the trade volume in the year has already surpassed the $1 trillion threshold. The 2022 Digital Asset Outlook report highlighted that the monthly dex trading volumes had been the highest at a value of $162.8 billion back in May. As far as month-over-month growth is concerned, the most significant was seen in January of about 137.3%.
However, the report noted that the volume had not made a full recovery after the crash in May and the spot volume ratio of dex-to-centralized exchange remained under 10% during the year. Along with the volumes of decentralized exchanges, the report also focused on the use of dex aggregators. The study disclosed that dex aggregators, such as 1inch, are only contributing 13.9% of the total trading volume. The researchers said that 1inch had been leading the dex aggregators with a market share of 64.9%, followed by a 16.8% share of 0x API (Matcha). A number of other subjects were also explored in the study, including derivatives market, market performances, mining revenue, a summary of venture funding in the year, stablecoins and on-chain volumes.