While the past week has been somewhat tumultuous, to put it mildly, for both crypto and stock markets, it looks like digital tokens related to decentralized exchanges (DEXs) are actually having a great time.
The sector is in the green across the board as most DEX tokens are up anywhere between 1.3% and 317% over the last seven days, according to CryptoSlate’s data.
Over the past week, DEX coins have been performing significantly better than CEX coins. Over the past 7 days:
DEXs are crypto trading platforms that enable direct peer-to-peer transactions between traders. This means that all trades are executed based on their hardcoded algorithms without any intermediaries. This also means that DEXs can’t restrict trading whenever they feel inclined to do so—unlike some of their centralized counterparts
(CEXs) that are owned and operated by certain entities.
While the DEX token sector’s dominance index remains relatively low at 1.35% by its market capitalization, many DEX-related assets saw steady growth over the past week. For example, UNI, the native governance token of widely popular decentralized finance (DeFi) platform Uniswap, is currently trading at around $18.83, up 20.3% on the day and 79.7% over the last seven days.
In terms of the overall sector change in seven days, DEXs lead with +43.88% while CEXs average price increase was limited to +7.56%.
Perhaps the general public’s attention has begun to turn towards decentralized trading platforms after witnessing the events that unfolded last week. When Reddit group WallStreetBets arguably scored a big win against Wall Street sharks—and on their own field—Robinhood has restricted the trading of GameStop’s stock (GME).
Notably, the exchange has only turned off retail traders’ ability to buy GME, impeding the stock’s price growth—at least on Robinhood’s platform. At the time, many users and experts argued that Robinhood’s decision could’ve easily been interpreted as an attempt to create a safety net for hedge funds’ short positions on GameStop—and put “the little guy” at a disadvantage.
Or could this be yet another echo of the “Elon Musk effect” in action? After all, Tesla CEO did hit that “Like” button on a tweet about a decentralized analogue of Robinhood. Is there anything he can’t pump?