Solana

Uniswap

Raydium

when

Decentralized exchanges (DEXs) keep expanding their presence and rearranging their influence. In the past month, the activity of DEXs continued to grow, with more inflows of users to top platforms. &nbsp;
DEXs activity continued to expand, boosted by a shift to the hottest spots for meme token activity. The balance of influence is also shifting, as Raydium outpaced Uniswap with percentage growth in the past four weeks. Raydium continues to list about 1% of new meme tokens that start out on Pump.Fun.&nbsp;&nbsp;
Raydium has been the leading DEX in the past five months, constantly improving its market share with new listings and the trading of already existing meme tokens.&nbsp;
The closing volumes in August will also give more clarity for the performance of DEXs in H2. In July, DEXs <a href="https://x.com/Syndica_io/status/1826301343273042368" rel="noopener noreferrer nofollow" target="_blank">trading</a> expanded to levels not seen since the market peak in March. The Ethereum DEXs ecosystem moved with the rest of the market, with Uniswap reflecting peak market days.&nbsp;
DEXs <a href="https://www.theblock.co/data/decentralized-finance/dex-non-custodial/dex-to-cex-spot-trade-volume" rel="noopener noreferrer nofollow" target="_blank">activity</a> is around 12.2% of the volume on centralized exchanges due to the unofficial nature of liquidity pairs. Trading on DEXs still hinges on whales providing liquidity, with more unpredictable inflows and outflows.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 User stats on top DEXs over the last 30 days
 Raydium, Uniswap, and Jupiter are leading with the highest activity during this period
 Other notable chains include TON, Near, Ronin, and opBNB <a href="https://t.co/DTU34nZem8" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/DTU34nZem8</a>
 — Coin98 Analytics (@Coin98Analytics) <a href="https://twitter.com/Coin98Analytics/status/1828071582109179929?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">August 26, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<h3 id="span-style-font-weight-400-dexs-growth-affects-underlying-networks-span">DEXs growth affects underlying networks</h3>
The Solana ecosystem grew its liquidity in the past months, reflecting the bigger share of meme trading. Tools available for DEX users also shifted, with dedicated <a href="https://dune.com/queries/3364122/5641996" rel="noopener noreferrer nofollow" target="_blank">routers</a> and block builders taking a large share of the traffic.&nbsp;
The usage of DEXs also affects the working of Ethereum, with more blobs added to each block. The addition of <a href="https://dune.com/queries/3523186/5924783" rel="noopener noreferrer nofollow" target="_blank">blobs</a> means users have shifted to cheaper, high-volume networks, which send transaction blobs to the main chain.&nbsp;
Smaller multichain exchanges are also growing even faster due to the low baseline activity. The chief competition is still between Ethereum-based markets and the emerging Solana trades. In the past week, however, Pancake Swap also reawakened, driven by increased bot activity on Binance Smart Chain (BSC).&nbsp;
In the past two weeks, BSC exchanges got a boost from the acceleration of the <a href="https://dune.com/queries/3759795/6323304" rel="noopener noreferrer nofollow" target="_blank">bot</a> trading wars. For now, the leader of DEXs sniping is still BonkBot, with Solana having the biggest share of fast, bot-driven swaps.&nbsp;
DEXs activity has not returned to the peak of 2021 in terms of volumes. However, the past two months have closed in on the 2021 achievements with<a href="https://dune.com/queries/4424/8622" rel="noopener noreferrer nofollow" target="_blank"> expanded</a> trading volumes. The results of 2024 are also happening without all-time highs for assets while also carrying a growing number of tokens and swaps.&nbsp;
<h3 id="span-style-font-weight-400-exchanges-become-key-revenue-generators-span">Exchanges become key revenue generators</h3>
The increased volumes led to more than <a href="https://x.com/Uniswap/status/1828077133412868371" rel="noopener noreferrer nofollow" target="_blank">300M swaps</a> on Uniswap in the year to date while expanding the list of newly launched tokens.&nbsp;
JupiterDEX is the third most active service for routing and finding the best swap prices. DEXs are still extremely competitive when it comes to including fast transactions, and not all swaps are priced the same. High-speed trading and guaranteed transaction inclusion are still expensive, even for Solana users.
Raydium still holds more than $1B in reported liquidity, while Uniswap is the leader with $4.75B. The biggest difference in decentralized services, however, is between DeFi protocols and token-trading hubs. The latter produces much higher fees, with $7M for Uniswap on a weekly basis and up to $3.59B in fees from Raydium. At the same time, protocols like Curve and Balancer show a much lower turnover of fees under $500K weekly.&nbsp;
The Aerodrome DEX is also trying to graduate among top trading hubs, already achieving $1.41M weekly fees. Overall, <a href="https://defillama.com/protocols/Dexes" rel="noopener noreferrer nofollow" target="_blank">DEXs</a> thrive when tied to a top L1 blockchain or one of the leading L2s like Arbitrum or Base. In terms of trading volumes, DEXs are also relatively agile, easily doubling their activity when trading interest returns. According to TokenTerminal, top DEXs increased their volumes in a range between 40% and 178%, with Uniswap expanding weekly <a href="https://tokenterminal.com/terminal" rel="noopener noreferrer nofollow" target="_blank">activity</a> by 88%.
&nbsp;DEX tokens also have their own narrative and may reverse the downward trend in terms of market price. The valuation of DEX tokens is still low in proportion to the volumes and fees generated. The entire category of DEX <a href="https://coinmarketcap.com/view/decentralized-exchange-dex-token/" rel="noopener noreferrer nofollow" target="_blank">tokens</a> is valued at $15.6B, with more robust performance from the assets linked to the top DEXs in terms of volumes and growth.
Cryptopolitan reporting by Hristina Vasileva

DEXs activity expanded in the past month with ongoing meme token boom

Table of Contents

Cryptopolitan_News

Other articles published on Aug 27, 2024

Ethereum Foundation’s Mega Transfers —What’s Vitalik Hiding?

Analyst Predicts Bitcoin’s Potential Surge to Six-Digit Prices

Trump, Hochul pitch nuclear energy as key to climate goals and AI expansion

AI News: Super Micro Faces New Hindenburg Fraud Allegations

Cardano Founder Hints at New ‘Partner Chain’ Collaboration with Algorand: What’s Next for ADA?

Blue-chip NFT Floor Prices Surge +20% This Week – Analysis

Join our free newsletter for daily crypto updates!