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What’s more, the DEX boom has revealed an emerging competition with centralized counterparts like Binance, Poloniex, and others.
DEXes Scale Liquidity and Trading Volume
In fact, it’s almost double the $325 million in trading volume recorded by DEXes in their best month last year.
DEXes are by far DeFi’s most successful products, with several platforms achieving product-market fit. Automated market makers (AMMs) like Uniswap, Curve, and Balancer stand out within this segment.
Yield farming and liquidity mining are a major reason for this boom cycle in DEX usage.
These incentives are resulting in unparalleled growth in the DeFi sector
Total DEX volume is en route to hitting $2 billion in July 2020. The rising popularity of permissionless trading will put non-custodial exchanges firmly in competition with their custodial counterparts.
On Jul. 23, 2020, DeFi exchange Uniswap’s 24-hour volume was $78 million. This is more volume than major centralized exchanges such as Poloniex, Gemini, and Binance US, according to CoinGecko’s exchange volume data.
In many cases, Uniswap can compete with centralized exchanges in terms of token liquidity.
Binance and Poloniex recently listed Synthetix Network (SNX) and a ton of tokens moved into these exchanges. But despite centralized exchanges enjoying higher trading volumes for SNX, the deepest and most even liquidity spread is still on Uniswap.