Adoption: Decentralized Exchanges (DEXes) Record $189B Volume in Q2

The decentralized exchange (DEX) sector appears to be profiting from the regulatory probe that enveloped the centralized exchanges in this year’s second quarter (Q2). In the past three months alone, the DEX market share capped $189 billion in trading volume.

Uniswap Leads With 57.5%

On Tuesday, the price-tracking platform CoinMarketCap revealed in an analytic study that the centralized and decentralized exchange markets attracted a total of $1.67 trillion in spot trade volume in Q2 2023. However, this figure represents a 36% decrease from the first quarter, which was $2.6 trillion, thanks to Bitcoin’s 2x rally.

Source: CoinMarketCap

The chart above shows the leading eight DEXes arranged in terms of their market share by trading volume. The Ethereum-based DEX Uniswap continues to lead the decentralized exchange market with an impressive 57.5% market share.

Uniswap’s performance can be attributed to several moves to develop its ecosystem. In mid-March, the project launched its v3 protocol on the BNB Chain. At the end of the month, Uniswap attracted over $53 million in trading volume. This achievement has undoubtedly rubbed off on Q2’s record. Last month, the Ethereum-based DEX announced its intention to unveil its v4 protocol. Such a move could potentially profit the project’s records.

Other DEXes See Mild Market Shares

Following Uniswap is the BNB Chain-native DEX, PancakeSwap, with a market share of 12.7%. The project’s performance as the second-largest DEX by trading volume can be tied to several events, including its v3 launch at the start of Q2. Curve Finance trails behind PancakeSwap with a market share of 11.5%.

Although the CEX market remains the investors’ choice compared to the DEX market, the latter is starting to pull more attention, reaching a height DEX to CEX ratio of 1:8. Outlining the factors that may have caused such an increase in engagement with the DEX ecosystem, CoinMarketCap wrote:

“[They include] the recent advancements in DEX products, market concerns regarding CEX driven by regulatory developments, a more favorable environment with lower gas fees, and a higher proportion of crypto-native participants given the current market conditions.”