The DEX sector continues to experience growth at a tremendous pace. The latest data released by Phoenix Group shows interesting developments.
According to the data, the total weekly trading volume on DEXs has climbed to $228.10 billion, representing a 188.77% rise from the previous week.
Leading DEXs by trading volume
As per data reported by Phoenix Group today, Raydium emerged as the DEX with the highest trading volume of $53.93 billion processed over the last seven days. Uniswap became the second top performer with $32.42 billion in weekly volume.
Pancake secured the third position after its trading platform registered a volume of $30.56 billion. Meanwhile, Orca clinched the fourth position with its record volume of $28.78 billion.
Moving down, Aerodrome occupied position 5 after it processed a volume worth $7.20 billion over the past seven days. Lastly, Curve, Cetus, Hyperliquid, and Thorchain registered an aggregate volume of $8.95 billion combined, as highlighted in the data.
Rising decentralized adoption
According to the data, decentralized exchanges continue to attract user adoption, highlighting their expanding role in crypto trading. The DEX-to-CEX volume ratio stood at 52.10% as indicated in the data. This highlights a rising adoption of decentralized trading platforms, fueled by their improved control of assets and security.
This volume ratio refers to the measure of the amount of trading volume happening in decentralized exchanges in comparison to centralized exchanges. A higher ratio indicates an increasing interest in DEXs among digital asset users.
The data highlighted a significant milestone. For the first time, 52.10% of total digital asset trading volume came from decentralized exchanges, highlighting a massive rise in their adoption. This signifies tremendous growth as users look for greater security and autonomy in their trading activities.
While centralized exchanges hold user assets and process trades on behalf of users, DEXs don’t operate like that. DEXs don’t hold user funds and they operate with less oversight or regulation from traditional financial authorities.
DEXs are typically more secure than CEXs as they don’t hold user assets. Rather, users store funds in their private wallets, which helps to minimize challenges associated with breaches and theft.
Furthermore, decentralized trading platforms allow users to trade tokens directly with one another, using blockchain and smart contracts. They have gained increasing popularity because they prioritize privacy. While they don’t require complex KYC procedures, they allow users to maintain full control over their private keys and trade with greater autonomy.
As CEXs often experience increased scrutiny from regulators, decentralized exchanges provide a compliance-free option that allows people to trade assets freely. Investors in countries with stringent rules (like China, Pakistan, and others) increasingly adopt DEXs to trade without any restrictions.
