Even though most cryptocurrency markets are still in the red, decentralized exchanges note a higher trading volume. so much even that the volume has more than doubled in the past 24 hours. This may be a sign of people stocking up on DeFi assets, or liquidating them in batches.
Decentralized Exchanges Note a big Spike
It is not entirely abnormal to see overall trading volume in this industry fluctuate. This can affect both centralized and decentralized exchanges alike. Whereas Bitcoin and Ethereum fight an uphill battle, DeFi tokens appear to generate a lot of volume all of a sudden. More specifically, DEXes have more than doubled their trading volume in the past 24 hours.
Considering how people primarily use decentralized exchanges for DeFi tokens, that seems a likely catalyst. Several tokens note big increases while Bitcoin struggles. Not entirely uncommon, as there is always money to be made in this industry. Finding the right markets – and taking the accompanying risks – can often yield good results.
Looking at the statistics above, decentralized exchanges are on fire. The trading volume more than doubled compared to yesterday. Going from roughly $700 million to $1.4 billion is an impressive turn of events. This also comes at a good time, as overall DEX trading volume took a bit of a negative turn lately. Even so, these platforms still combine for over $20 billion in trades every month.
For now, it is unclear what is driving the trading volume across decentralized exchanges. Judging by the pairs on Uniswap, the USDT/ETH and USDC/ETH volumes are the main contributors. There’s also a lot of liquidity for DAI/ETH and WBTC/ETH. An interesting situation, especially with Ethereum 2.0 just around the corner.
Uniswap, Curve, and SushiSwap Gain the Most
When examining the volume across decentralized exchanges, a few platforms stand out. This nearly 100% increase in daily trading volume bodes well for three specific DEXES. Uniswap, Sushiswap, and Curve have all seen an increase in volume over the past 24 hours. Every other DEX, on the other hand, has seen a small increase, but nothing to be overly excited about.
Although it is likely a temporary trend, it remains remarkable. No one expected to see decentralized exchanges increase their volume during this semi-bearish market momentum. At the same time, lower prices tend to attract more speculation overall. It is possible traders are more eager to take risks and end the year on a bang. Taking unnecessary risks is never advised unless one can afford to lose that money.