Altcoins Talks - Cryptocurrency Forum

Cryptocurrency Ecosystem => Decentralized Exchanges (DEX) => Topic started by: sirty143 on January 06, 2024, 03:50:26 AM

Title: Decentralized Exchanges Near Trillion-Dollar Milestone: A Year of Record Volumes
Post by: sirty143 on January 06, 2024, 03:50:26 AM
Decentralized Exchanges Near Trillion-Dollar Milestone: A Year of Record Volumes

(https://i.imgur.com/smaZurWm.jpg)

Per data analysis, decentralized exchange (dex) platforms nearly reached a trillion dollars in trading volume, posting $960.69 billion over the past year. Moreover, dex activity in December exceeded the previous 2023 high of $132.26 billion... See more for yourself here (https://news.bitcoin.com/decentralized-exchanges-near-trillion-dollar-milestone-a-year-of-record-volumes/).

Your opinion is greatly appreciated.
Title: Re: Decentralized Exchanges Near Trillion-Dollar Milestone: A Year of Record Volumes
Post by: hugeblack on January 09, 2024, 11:52:35 AM
Total value locked (TVL) is the measure that indicates the strength of the decentralized exchange because it is an indicator of the availability of liquidity, which is the basis of DEXs and the main problem with it. Both trading fees and liquidity determine whether the DEX is worth trying or not. The value of total value locked (TVL) is less than 10 billion for all known DEXs, so the number is still within these limits, although it is easy to fake trading volume numbers, especially in low fees blockchains.

Quote
In terms of total value locked (TVL) Uniswap leads with $3.76 billion, Pancakeswap with $1.65 billion, Curve with $1.62 billion, Balancer with $954.85 million, and GMX with $619 million.



There is another metric that caught my attention

Quote
While decentralized exchanges tallied $960 billion in the previous year, centralized exchange (cex) platforms hit $1.1 trillion in December alone.
If CEXs, with all the available liquidity, reached $960 billion in the previous year, it is impossible for DEXs to exceed this number in a month.
Title: Re: Decentralized Exchanges Near Trillion-Dollar Milestone: A Year of Record Volumes
Post by: yhiaali3 on January 10, 2024, 09:29:38 AM
If CEXs, with all the available liquidity, reached $960 billion in the previous year, it is impossible for DEXs to exceed this number in a month.
What is said in the article could be true, because the trading volume of CEXs depends not only on liquidity but also on users who deposit their funds on centralized exchanges in addition to the liquidity provided by CEXs.

It is known, of course, that the number of users of CEXs is much larger, so because users' assets are used by CEXs, it is possible that these numbers are correct.

I found this article with a diagram that might be useful, even though it is about the fourth quarter of last year:

(https://www.talkimg.com/images/2024/01/10/s4Jad.jpeg)
https://coincu.com/239823-cexs-spot-trading-volume-increases/
Title: Re: Decentralized Exchanges Near Trillion-Dollar Milestone: A Year of Record Volumes
Post by: jesuschrist! on January 10, 2024, 09:39:13 AM

I thought it was just one exchange.  The TVL for each is low though. but I think it's enough for users to invest in these DEXes. they are rarely been talked about on mainstream news sites.
Kudos that they are still running up to these days
Title: Re: Decentralized Exchanges Near Trillion-Dollar Milestone: A Year of Record Volumes
Post by: arabspaceship123 on March 05, 2024, 08:48:12 PM
It's better if more DEX's begin business so we've got more selection choices. CEX's always occupy more trade volume but it doesn't mean DEX's reached $1T we've got a long wait for it.
Title: Re: Decentralized Exchanges Near Trillion-Dollar Milestone: A Year of Record Volumes
Post by: joniboini on March 09, 2024, 09:33:55 AM
It's better if more DEX's begin business so we've got more selection choices. CEX's always occupy more trade volume but it doesn't mean DEX's reached $1T we've got a long wait for it.
What do you mean it doesn't reach $1T? Are you suggesting the data shown above is inaccurate or misinterpreted? What is the argument for that? It's been months since this thread was created, do you have additional data? Whether the data is accurate or not though, it is clear that DEX popularity increases with the rise of L2, etc, that promises scalability and faster transactions, which might help fix one of DEXs problems with a relatively higher fee compared to traditional exchanges. While decentralization is nice, I doubt other than the top 30 DEX or so will survive after the bar market. At the very least, they need to have healthy liquidity to sustain their operation.