DEX trading volume has witnessed a record growth last month as Uniswap is now one of the largest cryptocurrency exchanges in the crypto space.
In recent months, decentralized exchanges (DEX) reputation surged rapidly due to some exchanges such as Uniswap, Balancer, and Curve. In September alone, the total trading volume of decentralized exchanges has reached $22 billion.
Exponential Increase in DEX Trading Volume
According to the data published by the Blockchain data firm Dune Analytics, DEXs’s volume has broken all previous records, and an exponential increase has been noted over the last four months. The exponential rise is dedicated to major decentralized exchanges, Uniswap, and Curve. Last month, Uniswap witnessed a total volume of $14.9 billion, while the traded volume of Curve reached $5.2 billion.
Uniswap takes the lead in taking a maximum share of the market. At the end of August, Uniswap had a 71.2% share of the market. In September, DEX activity has reached a peak value. According to Dune Analytics, trading volume has reached a total of $24 billion over 13 decentralized exchanges. While in the last 12 months, traded volume witnesses a total of $45.97 billion.
Besides these two mainstream exchanges, small level DEXs have also seen significant growth in the same period such as Kyber Network and Balancer. Trading activity over Kyber Network has increased double in September as compared to June. Over Balancer, the volume has also surged ten-fold during the period.
In terms of volume, Uniswap is now included in the top exchanges and can be compared with leading centralized exchanges. Uniswap is ranked at 12th spot by crypto trading volume as $39.5 million traded over the exchange in the last 24-hours.
Rise of Wrapped ETH
In its latest report, Coin Metrics explains another reason behind DEX growth. The researchers at Coin Metrics said:
“Another result of DEX growth is the rise of wrapped ETH. Wrapped ETH (WETH) is basically a way to use ETH as an ERC-20 token. DeFi tokens are built on Ethereum’s ERC-20 token standard, which makes it easy to exchange one token for another. But the ERC-20 token standard was introduced after ETH was launched, which means ETH itself does not abide by these standards. To create WETH, ETH is locked up into a smart contract in exchange for WETH tokens. WETH supply has soared to new all-time highs following the launch of YFI.”