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Why Ethereum’s DEX volume fell, and how it impacts your ETH holdings

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Ethereum’s network activity dropped last month, leading to a surge in ETH’s circulating supply.

Why Ethereum's DEX volume fell, and how it impacts your ETH holdings

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  • Ethereum’s DEX volume cratered to its lowest level since February.
  • This was due to the general decline in demand for the network.

Daily trading volume on Ethereum’s [ETH] decentralized exchanges (DEXes) has declined to its lowest level since February, according to data from Artemis.

Per the on-chain data provider, the value of the total volume transacted on these DEXes climbed to a year-to-date of $4.8 billion on the 5th of March, after which it began to trend downward.

By the 21st of April, it had fallen below $1.5 billion to rest at a two-month low of $1.2 billion. 

Users look for other options 

The decline in Ethereum DEX volume is due to a drop in the count of active traders on these platforms.

According to data from The Block, the number of traders using Ethereum DEXes dropped from over 95,000 at the start of the month to around 63,000 last week.

This comes amid a broader decline in user activity on the network in the last month. Artemis’ data showed that the daily count of active addresses that have completed at least one transaction on Ethereum has dropped since 23rd March. 

With a daily active address count of 403,000 on the 23rd of April, user activity has dropped 23% in the last month. 

Due to low demand for the chain, the number of daily transactions completed on it has also reduced. During the 30-day period under consideration, Ethereum’s daily transactions have fallen by 8%.

When a network witnesses a decrease in daily transactions, its fees are also impacted. Ethereum’s total fees have dropped by 29% in the last month.

Is ETH inflationary?

As reported earlier, the decline in Ethereum’s network activity has caused ETH supply to become inflationary. This happens when the market witnesses a surge in the number of ETH coins created and added to its circulating supply.


Is your portfolio green? Check out the ETH Profit Calculator


It is caused by a fall in Ethereum’s user activity and fees, which results in a low burn rate for its ETH coin, thus increasing its supply. 

According to data from Ultrasound.money, ETH’s supply has risen by 6,867.44 ET in the last month. At press time, the coin’s circulating supply was 120,076,965 ETH.

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Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.
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