Decentralized Exchanges Register All-Time High Trading Volumes Owing to DeFi Wave
Decentralized finance (DeFi ) is one of the most popular segments of the crypto industry, and as per a blog published by OKEx crypto exchange, the total value locked in DeFi has for the first time crossed the $2 billion mark in July. Decentralized Exchanges or DEXs have been hugely benefitted, clocking the highest trade volumes ever in the last month.
According to a study by Ethereum-based analytics service firm Dune Analytics, DEXs registered a trading volume of $1.52 billion in June, a 70% hike from May. Out of all the DEXs, Uniswap and Curve received the highest growth figures, with trade volumes at $446 million and $350 million respectively.
DEXs have seen a rise in recent times, especially after several centralized exchanges were rocked with controversies. While some were accused of manipulating trading volumes to attract users, many others were marred by accusations of management corruption. One such example is the Canadian crypto exchange Quadrigacx, the country’s biggest. A big scandal was unearthed as users failed to access their crypto on the exchange worth over $190 million after its CEO suddenly passed away whilst on his honeymoon in India.
DEXs like Curve, Binance DEX, McAfee DEX, etc. are immune to such corruption, which makes them more credible than their centralized counterparts. They offer data and transactional privacy, a key feature that appears to be missing from the centralized exchanges. Moreover, unlike traditional exchanges, DEXs are more resistant to hacking. Since individual users have complete control over their funds, hacking a substantial value of crypto, which runs into hundreds of millions of dollars in centralized exchanges, is next to impossible.