Ethereum Blockchain is the backbone of the decentralized finance systems and has tremendously disrupted the traditional finance industry. With the popularity of Ethereum and DeFi growing each day, it is interesting to note that Ethereum based Decentralized exchanges are also gaining momentum.
As per Dune Analytics data, Ethereum DEX trading volumes crossed $120 billion in 2021 so far.
Ethereum Based DEXes Reach Massive Trading Volumes
Even though the gas fees on the Ethereum blockchain is relatively high, the Decentralized Exchanges based on Ethereum have been growing tremendously.
Uniswap and SushiSwap are two of the largest DEX in the Ethereum Powered DEX market having more than half of the market share. It is interesting to note that Decentralized Exchanges have done exceptionally well in 2021 until now with trading volumes of more than $120 billion. The trading volume of the first two months of the year is more than that of all the previous years. According to the Dune Analytics report, Decentralized Exchange trading volumes for February have reached $59 billion until now. In January, $63 billion trades were recorded.
While the Ethereum blockchain has always raised concerned amongst the traders regarding high transaction fees, the DeFi sector has gained increased confidence from the users. Even though several newer blockchains are emerging in markets, Ethereum is going to rule the space in the coming years. The total value locked on the DeFi Exchanges has reached $40 billion in recent days, which is an excellent sign for the emerging market.
Uniswap has more than 50 percent of the Decentralized market share, followed by SushiSwap. 1Inch is also growing stronger, with more than 18,450 traders using the platform last week. It is interesting to note that Uniswap has the largest number of weekly active users, approximately 142000.
Currently, Ethereum is trading at $1,466 with a total market cap of $168.381,228,998 on Feb 26th 2021, as per Coin Market Cap. As the markets undergo massive fluctuations in the past week, ETH could not grow past its last 20-day Exponential Moving Average, and the prices started to fall on Feb 25th. Despite the plunges, the DEXes are performing well.
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