Decentralized Exchange Trading Volumes Hit All Time Low

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By Diaron Jan 29, 2019
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Decentralized exchanges have now hit an all-time low in terms of US dollar traded value, as well as Ether transaction on-chain. And unique addresses - traders for lack of data clarity, has now also entered a new low as major exchanges amp up their efforts to go on-chain. But will there be any demand?

Whilst Ether on-chain volumes are hitting a new high, this has not come on the back of users on decentralized exchanges (DEX) (Diar, 21 January).

Since June 2017 when DEX began appearing online, a total of $8.9Bn has been traded on-chain. Last year accounted for the most - just pipping over $7.1Bn.

|| HOW LOW CAN YOU GO?

But DEX volumes have now dropped to a new low of $49Mn for the month of January - to-date - less than a tenth of what the largest centralised exchange Binance trades, alone, on a daily basis.

In terms of Ether, this month is a mere third of what was traded on Ethereum DEXs in January 2018. At peak, over 2.3Mn ETH was traded in May 2018 - now down to 400K.

|| IF YOU BUILD IT....WILL THEY COME?

Major exchanges have all shown interest in pursuing the DEX model. Binance has already shown a short demo of their platform. OKEx's Open Ledger DEX has launched, as has Bithumb's DEX. And Coinbase last year purchased Paradex.

But none have managed to win over traders in any significant regard despite the allure of near low, or no fees at all.

And this is unlikely to change with current slow user experience infrastructure that demands deposit, withdrawal and transaction gas fees - low as they might be.

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Read the original report here.

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