DeFi is slowing down, but this does not prevent decentralized exchanges (DEX) from registering in the 3rd quarter of 2020, growth far exceeding that of Bitcoin (BTC).
Only a few DEXs are sharing the pie, with a few platforms standing out with $ 1 billion in trading volume from scratch just a few months ago.
A boom of over 1,000% quarter to quarter
A report of TokenInsight indicates that the trading volume on DEX reached $ 42.6 billion during the 3rd quarter of 2020, an increase of 1,132% compared to the previous quarter.
The month of July 2020 recorded a trading volume of 5 billion dollars, which represents an increase of more than 30% compared to the 2nd quarter.
Volumes continued to increase during the 3rd quarter, with average monthly growth of 140%.
On the side of Bitcoin, after a disappointing September, it began a bullish rally in October 2020; investors are now looking to BTC, the DeFi boom having strongly marked the cryptosphere during the summer.
From 0 to 1 billion: DeFi’s success story
Trading volumes are concentrated around a few DEX, to the detriment of other players in the sector.
Uniswap (UNITED) is responsible for 50% of transactions. 8 platforms exceeded $ 1 billion in trading volume in the 3rd quarter from zero in the previous quarter.
This growth is due in particular to the wealth effect, which facilitates the access of an average user to quality DeFi projects, before they reach secondary markets.
The rise of DeFi has also changed the balance of power between DeFi tokens and centralized exchanges. They no longer have to woo these to be listed on the major crypto platforms.
Despite this phenomenal growth, transactions of DEX represent only 1.24% of the total volume of the spot market.
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Uniswap reigns over other DeFi exchanges, capturing half of the sector’s transactions. Is it also necessary to better distribute the volumes of transactions between the various players in the sector in order to “better decentralize” the latter? DeFi is slowing down, Bitcoin is regaining its throne even though it is currently struggling to cross $ 16,000 to be able to continue its journey to new ATHs. A challenge that remains within his grasp and that he could succeed by the end of this year 2020.
Litecoin, welcome in the Silver Age