- The trading volume of decentralized exchanges reached $37 billion, an all-time high, at the beginning of 2021.
- Uniswap and Curve Finance contributed a lot to the explosive rate of transaction volume.
- Decentralized exchanges are trying to force their way back into the spotlight after Bitcoin’s rapid rise in the past few weeks.
It would appear like the 2020 decentralized finance (DeFi) boom is repeating itself this year. In fact, the trading volume of decentralized exchanges (DEXs) have once again set an all-time high (ATH).
According to Dune Analytics, DEXs have recorded a combined trading volume of $37 billion in just 20 days since the start of 2021. Notably, this beats the old record set in September 2020 at $29 billion.
Among these, Uniswap and Curve Finance are contributing a lot to the explosive transaction volumes.
Additionally, this means that the chances of setting another record later this month is very high for DEXs. It still has more than ten days to go before this month wraps up. At this rate, the exchanges might as well complete 2020 with a massive volume record of $55 billion. Interestingly, this is half of the total volume count recorded last year.
Experts also believe that the two leading digital assets Bitcoin and Ethereum have triggered the recent surge. In fact, industry specialists expect Bitcoin to hit $40,009. Meanwhile, Ethereum is placing well over the $1,310 mark at the time of writing, according to CoinGecko.
After Bitcoin’s rapid rise in the past few weeks, DEXs are trying to force their way back into the spotlight.
For those who may not be aware, DEXs provide essential services that most centralized exchanges offer. However, users can swap tokens without transferring to the exchange. Also, because DEXs use smart contracts to carry out other activities, users need not verify their identity.
DEXs gained fame across the crypto industry when they finished 2020 with a massive $120 billion transaction volume. This figure eclipsed their performance in 2019, which is only at about $3 billion.