In the past week, DEXs experienced a significant decline in transaction volume, reaching $133.33 billion. It is a 39.11% decrease compared to the previous week’s $228.10 billion. The decrease reflects wild price fluctuations in the virtual currency market as investors often become careful when the market witnesses a downtrend or period of distress.
Raydium leads the crowd
Despite the decrease, DEX trading remains strong attributed to the increasing adoption of decentralized exchange platforms, which have increasingly grown in recent months.
As per data shared by Phoenix Group, Raydium became the top DEX with the highest trading volume of $32.17 billion in the past seven days.
Uniswap scooped the second position with $24.22 billion. It was followed by Pancakeswap, which recorded a $22.46 billion transaction volume.
While Orca came fourth with a $9.19 billion trading volume, Aerodrome secured position fifth with $4.77 billion, and Curve clinched the sixth spot with $2.69 billion.
Also, CETUS, THORCHAIN, and Hyperliquid gained visibility as their trading volumes followed each other closely. While Cetus processed $1.29 billion in the last seven days, ThorChain registered $1.27 billion, and Hyperliquid recorded $1.26 billion.
DEXs and CEXs have a complementary role
According to the data, the DEX versus CEX dominance ratio currently stands at 43.66% indicating that decentralized exchanges are experiencing increasing adoption among digital asset users. This means that DEXs are setting up substantial competition against CEXs that are currently controlling crypto trading.
While DEXs are anticipated to grow this year, CEXs will continue to remain as top avenues for newcomers. Since cryptocurrency trading started, CEXs have dominated the virtual currency market. Such exchanges currently host over 600 million users worldwide combined, providing high liquidity and user-friendly platforms for beginner investors and traders.
In the previous year, DEXs started gaining popularity, offering a decentralized approach that allows users to uniquely trade crypto assets. Due to several advantages that they provide to users, DEXs are increasingly experiencing growth. However, despite their rising adoption, CEXs are not going anywhere as they will still play a critical role in the crypto market, especially in onboarding new customers. Since the two types of exchanges have complementary functions, they will continue contributing to cryptocurrency’s adoption and growth in the future.
