Study: DeFi trading volume on major DEXs increased by 550% in 2021 year – Bits Media

Number of large decentralized exchanges (DEX) growing against the backdrop of a general reduction in the number of centralized cryptocurrency exchanges.

According to the data
the Chainalysis report, volume of assets on large decentralized exchanges, such as Uniswap and SushiSwap, grew fivefold compared to 2020 year, and DeFi trading volume on them jumped by 550% in 2021 year. The rise of decentralized exchanges has coincided with the explosive growth of the DeFi market. In November, DeFi trading volume reached $274 billions and most of the assets are locked in DEX based on Ethereum, such as Curve and Uniswap.

The growth of derivatives exchanges is also noteworthy, the number of which is still small compared to other categories. In August, derivatives exchanges traded 265 000 transactions, it's less 5 million transactions, committed on DEX in the same month. But the average size of derivatives trades was $79 000 Compared to $26 500 on DEX.

Since average transactions on derivatives exchanges were higher, their growth for 2021 the year turned out to be longer, than DEX. As a result, major derivatives exchanges, such as Deribit, Bitmex and FTX, trading volumes soared by 686%.

The rise of DEX comes amid a steady decline in centralized cryptocurrency exchanges. In July 2020 year after growth since January 2019 year, the number of active cryptocurrency exchanges began to decline. Chainalysis Head of Research Kim Gower (Kim Gauer) reported, what's within 12 months, the number of trading platforms decreased from 845 to 672. In his opinion, the reason is the consolidation of platforms and the withdrawal of small exchanges from the market due to lack of liquidity.

Following the expansion of the cryptocurrency ban in China, the price of DEX tokens has increased significantly, and trading volumes in some DeFi protocols have exceeded those of large centralized exchanges. According to DappRadar, the total value of crypto assets locked in DeFi applications increased by 936%. However, at the beginning of the month, TokenInsight analysts reported, that during the third quarter, trading volume on DEX on Ethereum decreased by 23%.