- The trading volume of decentralized exchanges (DEXs) reportedly rose to $29 billion in November.
- The DEX trading volume reached its all-time high of around $124 billion in May 2021.
- The market share of the DEX to CEX trade volume plummeted to 3% in November.
Crypto analytics provider Kaiko has reported that trading activity on decentralized exchanges (DEXs) increased over the past month. According to Kaiko’s report, the monthly trading volume of DEX has recovered substantially from September’s multi-year low, reaching $29 billion in November.
DEX trading volume hit its all-time high (ATH) in May 2021, when it surged past $124 billion. November’s DEX trading volume lies far behind its ATH. Notably, the volume hike in November was less impacted by major players like Uniswap and Curve on Ethereum and PancakeSwap on BNB Chain, as they showed a slower pace of growth.
In addition, Kaiko shared that the market share of decentralized exchanges has decreased relative to that of centralized exchanges this year. In November 2020, the crypto industry showed the highest rate of market share of DEX to CEX volume at 10%, when the public interest in DeFi was at its peak.
As per the report, the market share dropped from 5% in January to 3% in November. To illustrate the CEX/DEX market share, Kaiko examined the trading volume of Uniswap, the largest DEX, and Coinbase, the leading CEX. Though Uniswap’s market share in relation to Coinbase is comparatively lesser, it remains substantial at 40%.
Historically, the trading volume of centralized exchanges (CEXs) like Binance and Coinbase always outpaced the trading activity of DEX. However, the gradual decline of Binance’s spot market share, which fell from 55% at the start of 2023 to just 30% in December amid regulatory challenges and the guilty plea of its former CEO Changpeng Zhao, may have partially contributed to the growth of other centralized exchanges and an increase in DEX trading activity.
As per CoinGecko’s data, Uniswap is the largest DEX holding a dominant share of 64.4% of the DEX market. Curve and PancakeSwap follow Uniswap with a market share of 11.5% and 9.5% respectively.
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