The Ethereum network, as it stands now, is rife with high transaction fee problems. However, that hasn’t stopped the decentralized exchanges, or DEXs, within the network are still reaching spectacularly large trade volumes. In 2021 so far, over $120 billion in DEX transactions have been processed.
2021 Proving To Be Very Good For DEXs
What’s amazing about this, is that 2021’s first two months have managed to generate enough trading volume to beat all the previous years combined. As is the norm, the two biggest fish within the Ethereum space is Uniswap and Sushiswap, Uniswap’s cloned counterpart. These two DEXs constitute about 65% of the entire trade volumes for February, with Uniswap boasting over double the volumes of its competitor. Uniswap alone boasts almost 50% of the entire market share within the DEX space.
BSC Turning Significant Volumes
That metric doesn’t say it all, however. Once you start looking at the weekly number of active traders within every platform, it’s clear that Uniswap boasts three-quarters of the DEX users for Ethereum. Uniswap recorded close to 142,000 users within the past seven days of trading on its platform.
By comparison, SushiSwap only holds 8,911 users. Interestingly enough, while Sushiswap is second place in terms of volume, it’s third in users. It’s beaten out by 1inch, which boasts a seven-day user tally of 18,450.
Another big competitor in terms of blockchains for the DeFi space is none other than the Binance Smart Chain (BSC). Pancake Swap, the big boy for BSC, managed to report a daily volume of above $1.1 billion. Binance being Binance, it’s not quite clear whether or not those are actual or inflated volumes.
The Year Of The DEX
The DEX space within the DeFi sector has, more or less, risen to new all-time highs. DEXs across boast an aggravated Total Value Locked (TVL) of more than $40 billion. Many a user have moved from Ethereum to BSC, pushed out by the rampant congestion and transaction fees. Once Ethereum manages to fix this, either through L2 or full rollout of ETH 2, it’s to be expected that there will be a large influx of people from other networks at large.
Now, however, these high transaction fees, and the sheer volume of users still taking part, stands as a testament to how dedicated the crypto space is for DEXs. The great Gamestop fiasco’s subsequent backlash, where exchanges started to refuse retail clients the ability to buy certain stocks, certainly didn’t hurt the attractiveness of DEXs either.