According to Chainalysis’ study report, on a span of a single year, the trading volumes recorded by some of today’s most prominent decentralized exchanges (DEXs), namely Uniswap, PancakeSwap, and Curve, have surged by 550%. This once again evidences the booming growth of DEXs, which has officially outpaced its centralized contemporaries’ growth by a large margin.
While almost every category regarding DEXs is on the up and up, it’s the total number of such exchanges that has experienced the most growth. As a matter of fact, the number of large DEXs has remained on an upward trajectory despite the total number of operating crypto exchanges going down.
Chainalysis’ head of research, Kim Gauer, admitted that the growth of DEXs despite the decline of active crypto exchanges could be a bit baffling. However, it did not come as a surprise. Gauer states that the team behind the year-long data study is already more than aware of the downward trend among crypto exchanges even before starting, but not how erratically it affected other exchange types.
Nevertheless, Chainalysis’ report points towards the explosive growth of the DeFi sector as the main reason behind DEXs booming popularity. As per the latest aggregated data report published by DeFi Llama, over $274 billion is currently circulating on various DeFi applications.