Ethereum Decentralized Exchanges Exceed $3 Billion in Trading Volumes

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Summary

Decentralized exchanges running on the ethereum network are now nearing $1 billion a month in trading volumes. Of course the price on Uniswap is generally the market price based on arbitrage which is mainly done by bots. That’s a huge milestone for this still very new space where reside ‘traditional’ but smart contract based exchanges as well as algorithmic broker-like exchanges. According to Anthony Sassano, Product Marketing Manager at the Set Protocol, volumes on ethereum based decentralized exchanges (dex) have surpassed already all of 2019. He says last year $2.4 billion was handled by the tracked dexes, while this year it’s already at about $3 billion.

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Decentralized exchanges running on the ethereum network are now nearing $1 billion a month in trading volumes.

That’s a huge milestone for this still very new space where reside ‘traditional’ but smart contract based exchanges as well as algorithmic broker-like exchanges.

Ethereum DEX stats, June 2020

DyDx for example is a traditional looking exchange where you put a bid – as in a price you are willing to buy or go long – or an ask, the opposite.

While something like Uniswap is more a complex algorithmic decentralized broker that does not depend on bids and asks, but instead gives a fixed price based on the amount of say wbtc and eth that have been sent to the ‘pools’ to make them available for swapping.

Of course the price on Uniswap is generally the market price based on arbitrage which is mainly done by bots.

So you have the top three exchanges/brokers doing pretty much the same amount of daily volumes.

That’s...

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