The trading traffic of decentralized exchanges exceeded USD 4,320 million last July. The Uniswap, Curve, and Balancer protocols handled the bulk of the activity with 76%.
Last July, there were records for decentralized exchanges (DEX) on Ethereum, whose monthly trading volume reached USD 4.32 billion, setting a new record high, the second in a row.
The trading traffic on Ethereum DEX last month represents a 184% increase from the USD 1.52 billion that they traded in June. At the time, they reached a new record high.
Data from Dune Analytics show that the decentralized exchanges Uniswap (41%), Curve (25%), and Balancer (10%) led the trading volume in July. In the last few days, these three platforms have had a market share of about 43%, 16%, and 6%, respectively.
The trading volume on decentralized exchanges has not stopped growing in the last six months. In July, it experienced traffic 12 times higher than the one that they had traded in the same period last year when they processed USD 350 million. In March of this year, the DEX sector registered a trading volume of USD 1.03 billion, which also represented a new record at the time.
Yield Farming: DeFi Boom that Spreads like Fire on DEX
The growing increase in the use of decentralized exchanges occurs on a par with the boom in Decentralized Finance (DeFi). At the same time, the popularity of yield farming, which seeks to take advantage of the high rates of return of these decentralized protocols, has driven this sector.
At the end of June, Ethereum exceeded one million daily transactions. The increase in operations would be directly related to the practice of yield farming.
The following month, the transaction volume of DeFi dApps exceeded USD 12 billion. DappRadar noted in a report that this average of transactions represented a new all-time high. In the document, the specialized website also attributes the boom in the sector to so-called yield farming.
With the increase in the trading volume that pours into the DeFi space, it is not surprising that the monthly trading traffic on decentralized exchanges is also increasing.
Besides, DappRadar sees the DEX sector as the second-largest driver of transaction volume in the DeFi ecosystem. However, it notes that this only moves 4% of the total volume of the activity in DeFi.
SEC Is Now Going After DeFi
The US Securities and Exchange Commission (SEC) plans to contract a blockchain analysis service to investigate decentralized finance (DeFi) on the Ethereum network. The regulatory entity argues that it seeks to know the logic and operation of this type of programmable transaction.
On July 30th, the regulatory agency published a request inviting software companies to submit their proposals. In the request, the SEC would seek to identify the types of tokens used, the purpose of the contracts and restrictions on buying and selling, as well as potential modifications.
By Alexander Salazar
