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DeFi’s growth crucial for DEX’s increase in trade volume

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Benefitting from innovation in the maturing cryptocurrency ecosystem, decentralized exchanges or DEXs have become the next big wave that has exhibited positive figures over time. 2019 was indeed the year of DEXs.

Decentralized financial services or DeFi has been touted as a potential growth catalyst for DEX. Most DeFi services rely on decentralized exchanges for their liquidity and hence as DeFi products grow, so will DEXs. Along the same lines, Will Warren, Co-founder, and CEO of open protocol for DEXs, 0x stated that that DeFi has been an important factor in terms of increasing the volume.

In the latest edition of Flippening podcast, Warren stated,

“We’ve started to see another wave of adoption in DeFi that feels much more organic and sustainable… Users are deriving value from DeFi without some of the questionable aspects of ICOs.”

According to Warren, DeFi services have some “nice synergy with decentralized exchanges”. He added,

“We’re probably going to start to see relayers who are integrating more of these DeFi services and where to allow their users to margin trade, for example, or maybe create stop loss orders.”

At press time, as per Dune Analytics’, an Ethereum data curator which reports DEX trading volume, $22 million were traded in the last seven days. DEX recorded massive trading volume in November despite high volatility in the market. Warren had previously stated that when there’s a lot of volatility,  centralized exchanges, and decentralized exchanges, witness increased trading volume. Talking about the increase in DEX volume since the beginning of 2019, the 0x exec said,

“DEX has have seen an increase in market share over the last three months. And I think the trend extends back even further than that for 0x. Typically, we see daily volumes in the range of $500,000 to multiple millions of dollars. And historically like over the last three years, over a billion dollars of volumes gone through the protocol and there’s been over a million trades and it is growing.”


Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.
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