Author: Joseph Young
source:
Compiler: Yu Shunsui@星星日报
Original title: Planet Frontline | Ethereum DEX is competing for CEX market share
The decentralized exchange (DEX) on Ethereum is dominating the market. The ETH deposit fees paid by people to centralized exchanges have fallen, while the trading volume of DEX such as Uniswap continues to increase.
On the Ethereum blockchain network, when users send transactions, they need to pay transaction fees in the form of Gas. If the ETH fees associated with centralized exchanges drop significantly, it may indicate an overall decrease in the activity of Ethereum users on centralized exchanges.
, The proportion of Ethereum fees used for centralized exchange deposits has dropped from 25% three years ago to 1%. They stated, “A picture shows the change from CeFi to DeFi. The proportion of ETH deposit fees paid to centralized exchanges on Ethereum has dropped from about 25% in 2017 to less than 1% today. In the past few months Here, almost all TXS fees involving centralized exchanges are used for ETH withdrawals.”
One of the main reasons why major DEX can exceed some large centralized exchanges in trading volume is availability and liquidity.
In the past two years, the attractiveness of users relying on decentralized exchanges has decreased. At that time, the DeFi cycle did not develop to its current scale, and there was not enough interest in the emerging DeFi projects.
Most importantly, decentralized exchanges are now as liquid as many top centralized exchanges. This means that traders can trade large amounts of cryptocurrencies without severe slippage and lack of liquidity.
For example, as of December 12, Uniswap’s liquidity was US$1.6 billion and daily trading volume was US$246 million.
Some Ethereum users speculate that as ETH and DeFi users flock to decentralized exchanges, centralized exchanges may be trying to guide people to Bitcoin.
And said that this is a logical speculation. He said, “This is a good point. Ethereum/ERC20 is mainly used for decentralized platforms (DApp), Uniswap is going beyond centralized exchanges (CEX). Bitcoin does not have smart contracts, so it is mainly used for centralized Platform, used for functions other than payment.”
According to Crypto Fees data, Uniswap processes more than US$880,000 in Ethereum network fees every day. This is only a difference of 400,000 U.S. dollars from the Bitcoin network’s daily cost of approximately 1.285 million U.S. dollars.
In addition, the wider DEX market gains a larger share in the global cryptocurrency trading market every day. “Among DEXs, SushiSwap has grown strongly and currently accounts for 11% of the top 7 DEX market shares. Despite the fact that some of the mining liquidity has been robbed by Suushswap’blood sucking’, Uniswap still maintains a very strong lead. However, DEX overall monthly Volume fell by 3.3 billion dollars from the previous month.”
Comments
Post a Comment