Meteoric growth of dexs volume in 2020

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The total amount traded on DEXs for all of 2019 was only $2.4 billion dollars. In the first 4 months of 2020, DEXs did over $2 billion in volume and in mid-August, more than $420 million was traded in a single day on Uniswap. More than $42.6 billion was traded in Q3 of 2020 alone. What caused the explosion of interest in decentralized exchanges?

The prospect of yield farming was the main force behind the craze. Though it’s died down a little, platforms would release governance tokens that could only be obtained through a DEX, or by locking some other cryptocurrency into a protocol. As the amount of money, or TVL, locked into these protocols rises, token growth often follows suit. Buying into a project right when it launches could bring speculators 10x… or it could be like throwing money into a black hole. For every successful moon mission there are ten rug pulls in the world of DEX trading.ADVERTISEMENT

DEX’s aren’t just for traditional cryptocurrencies either, PredIQt released MindSwap, a decentralized exchange for exotic assets that lets anyone trade wrapped prediction market shares. The automated market maker is a game changer. Expect to see more innovation on this front in the coming months.

We’ve also compiled a few other articles for important crypto stories that have been popping up in the news. Send us a message if you have any ideas for features!

In the last three months alone decentralized exchanges have pushed over $42 billion dollars in volume. That’s over 20x the amount of volume they saw in the first three months of 2020.

source: everipedia.com

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