The decentralized exchanges (DEX) are witnessing serious traction, with the total weekly trading volume rising to $113.40 billion, and the change recorded climbing up to a noticeable 12.62 percent.
The latest report by Phoenix Group shows that the decentralized exchanges are still taking dominance over the centralized exchanges (CEXs), and the DEX-to-CEX dominance accounts for 28.04%.
PancakeSwap Dominates the Market with $65.13 Billion in Weekly Volume
Topping the DEX leaderboard is PancakeSwap, with a mind-blowing amount of seven-day trading volume amounting to $65.13 billion. With a powerful total value locked (TVL) of 10.69 billion, PancakeSwap has become the leader in the trading platforms that traders need to find good liquidity and quick transactions on the Binance Smart Chain.
Behind PancakeSwap, but also recording impressive metrics, is Uniswap, the Ethereum-based company that pioneered the use of automated market-making.Â
Uniswap has a trading volume of US$27.76 billion in seven days and a TVL of US$4.34 billion, and still has high user activity despite expensive gas fees, making it a significant key player in the Ethereum market.
Mid-Tier DEXs Make Their Mark: Raydium, Aerodrome, and Curve
There are a number of mid-sized decentralized exchanges that are having a significant impact on the general market. Raydium is a Solana rush, which has achieved a seven-day volume of $7.21 billion and a TVL of $ 626.54 million.
Aerodrome, another emerging platform, reported a weekly volume of $3.81 billion and has a TVL of $458.30 million. Being a relatively recent startup, Aerodrome is also gaining rapid traction among users, possibly because of its cutting-edge liquidity incentives and protocol mechanics. In the same week, Curve, specialising in stablecoin exchanges and low slippage, had a volume of $1.45 billion and TVL of $182.63 million.
Emerging Platforms: Maverick, LFJ, DODO, and Camelot Show Steady Growth
Maverick, one of the early movers of the decentralized exchanges, managed to achieve volumes of $620 million in seven days, although TVL stood at a modest $24.38 million. Its performance is indicative of an effective model of capital utilization or a large volume of active users engaged in trading in short-term, smaller-cap tokens.
LFJ, a less famous platform, had weekly volume and TVL of $579 million and $101.63 million, respectively. Having such a high ratio of volume to TVL is an indication of the overall potential activity of the user base or even the liquidity pools.
DODO, whose trading volume is $457 million and TVL is $85.60 million, further develops the model that combines a hybrid orderbook and AMM. DODO will continue to attract traders who are interested in narrow spreads and less slippage.
Finally, at the end of the list, Camelot was able to produce a trading volume of $344 million on a comparatively small TVL of $49.30 million. It appears that the platform is gradually finding its niche, perhaps on other chains or by listing new tokens.
DEX Sector Matures as Institutional and Retail Adoption Increases
The increase in DEX volume and share of the market is not merely retail. Major players in the institutions are also venturing into the space because of increased regulation transparency, protocol improvement, and improved infrastructure.
The decentralized exchanges segment is poised to grow with the likes of PancakeSwap and Uniswap remaining dominant, and Raydium, Aerodrome, and Curve making sure that there is diversity in the ecosystem. Decentralized trading is likely to become a core part of the entire digital asset economy as DeFi protocols become more effective and user-friendly.
