Uniswap

Decentralized exchanges (DEXs) have experienced a significant downturn in trading volumes, according to data from leading cryptocurrency market data provider, <a href="https://research.kaiko.com/reports/quarterly-report-q2-2023" rel="noopener noreferrer nofollow">Kaiko</a>. The monthly spot trading volumes on DEXs plummeted by 76% to $21 billion in June this year, compared to $88 billion in January 2022. This decline was steeper than the 69% drop seen by centralized exchanges, which fell to $429 billion.Despite the <a href="https://cryptotale.org/arbitrum-dex-trading-volume-surpasses-bnbchain-amid-all-time-high-what-causes-the-volume-to-rise/" rel="noopener noreferrer nofollow">appeal of DEXs</a> to crypto enthusiasts who prefer to avoid the intermediary model of traditional finance, these platforms have been grappling with challenges. They often suffer from complex user interfaces, slower transaction speeds, and lower liquidity than centralized venues such as Binance Holdings Ltd. or Coinbase Global Inc.Per the report, institutional investors, in particular, have found it <a href="https://cryptotale.org/defis-institutional-adoption-is-many-years-away-blackrock-inc-executive/" rel="noopener noreferrer nofollow">difficult to navigate</a> these peer-to-peer exchanges. However, Richard Galvin, co-founder at Digital Asset Capital Management, <a href="https://www.bloomberg.com/news/articles/2023-07-23/decentralized-crypto-exchanges-are-losing-digital-asset-market-share" rel="noopener noreferrer nofollow">noted</a> that these platforms are still in their infancy, being generally less than three years old, and their designs continue to improve.Efforts to enhance these platforms are underway. Uniswap, the largest decentralized trading venue, recently introduced a <a href="https://cryptotale.org/uniswap-labs-unveils-vision-for-uniswap-v4-iteration-report-says/" rel="noopener noreferrer nofollow">new protocol</a> aimed at improving prices for clients by aggregating disparate digital-asset liquidity sources. Earlier this year, blockchain firm Vertex <a href="https://www.bloomberg.com/news/articles/2023-03-08/decentralized-crypto-exchange-vertex-aims-to-compete-with-binance-coinbase" rel="noopener noreferrer nofollow">launched</a> a decentralized exchange claiming to offer speeds comparable to centralized platforms.Read full article at<a href="https://cryptotale.org/decentralized-exchanges-face-steep-decline-in-trading-volumes/" rel="noopener noreferrer nofollow"> CryptoTale.</a>

Decentralized Exchanges Face Steep Decline in Trading Volumes

CryptoTale

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