A Tremendous Amount of Weekly Trading Volume for DeFi
According to the findings of Dune Analytics, decentralized exchanges (DEXs) are now experiencing one of their finest runs as weekly trade volume reaches $32 billion. This comes as the market is experiencing instability as a result of the FTX incident.
Despite this, Uniswap controlled the lion's share of the trading volume, which accounted for $20.9 billion of the total transactions that took place over the course of seven days. Additionally, Uniswap's trading volumes on November 8 increased by a factor of two compared to the previous trading day.
Since the beginning of this month, the daily trading volume on Uniswap has been close to $1.3 billion, but after hearing the news about the FTX rescue, it skyrocketed to more than $4.2 billion.
Not only Uniswap has seen an increase in trading volumes, but other exchanges, such as Curve, have experienced even larger increases, such as a staggering $1.3 billion up from $700 million. Other tiny businesses in the decentralized finance industry, such as 1Inch Network, also proclaimed their successes within the same time period as the others.
According to the data provided by Dune, the network processed more than $5.3 billion worth of transactions throughout the last week.
DEX's Rising Popularity
Decentralized exchanges have, as was to be predicted, continued to increase their notoriety as a result of their recent success. Nevertheless, this should not come as a surprise because history has shown that prior liquidity shortages tend to generate a widespread "crypto winter," which is another name for a market downturn. This has been the case in the past.
Because of the current state of the market, many prominent digital asset lending platforms, including Vauld, Celsius, Hodlnaut, and Singapore-based Zipmex, have all suspended withdrawals on their respective websites. On the other hand, the phrase "market circumstances" can also mean "not having adequate liquidity to counter pending withdrawal demands."
It is important to take note that all of the cryptocurrency lenders who were discussed earlier have now declared bankruptcy. In addition, in order to "stabilize liquidity," cryptocurrency exchanges frequently adopt the practice of freezing customer withdrawals.
The failure of FTX to fulfill the $8 billion in withdrawal requests within about 72 hours prompted the company to make the decision to put a hold on withdrawals being processed. Furthermore, according to the sources, FTX CEO Sam Bankman-Fried attempted to secure emergency funding prior to the company's declaration of bankruptcy.
DEXs are the solution for clients who want to avoid the hazards associated with putting their cash in centralized platforms and are seeking for an alternative. However, if there is one thing that can be learned from the failure of FTX, it is that the cryptocurrency industry is moving farther and further away from its founding ideal of decentralization.
