Totle has commissioned D5, a group of data scientists and engineers, to analyse the use of DEXs in early 2019.
A net increase between May and June
According to the data, in June 2019, approximately $300 million worth of transactions were carried out on various DEXs, compared to “only” $86 million in January.
The volume traded on DEXs increased dramatically between May and June, reaching a daily high of over $24 million.
However, the increase in volume did not translate into a similar increase in the number of transactions.
The total number of transactions recorded in June, in fact, was not even twice as many as the 240 thousand transactions in January, stopping at about 426 thousand.
More confidence in DEXs?
According to the results of D5, one of the main reasons for this increase in trading volume is the increased confidence among users in decentralised exchanges. The latter provide greater security than the centralised counterpart and avoid cases of sudden closures such as those that occurred on Cryptopia, for example.
According to the research group, another determining factor is the emergence of decentralised financial services such as Edge Wallet, bZx and MakerDAO. As these services rely on decentralised exchanges to provide liquidity, any increase in their demand also implies a proportional increase in volumes on DEXs.
According to data collected by DAO, about 75% of all the DEX liquidity comes from decentralised exchanges that do not require account verification via KYC.
The decentralised exchanges Kyber Network and Uniswap alone accounted for 30% of the total DEX volume.