The trading volume of the Ethereum DEX will increase rapidly in 2020

The decentralized, ether-based exchanges (DEX) experienced a huge increase in trading volume in 2020 compared to last year. In just four months, the amount of cryptocurrencies traded on DEXs has already exceeded almost the full 12-month volume of 2019, according to Ethereum data analysis company Dune Analytics.

As the graphics show, cryptocurrencies worth around $ 2 billion have already been traded on DEXs since early 2020. At the same time, the total DEX trading volume in 2019 was $ 2.4 billion.

According to DappRadar, DEXs are currently one of the most popular decentralized applications on Ethereum . Platforms such as Uniswap, Kyber, WeDEX and IDEX are among the top 10 in terms of the total number of active users. Uniswap, Kyber and IDEX are also in places 4, 5 and 10 respectively, measured by their stock exchange volume among all Ethereum dapps.

The decentralized exchanges experienced a huge increase in trading volume during the market crash in March 2020. Interest in Uniswap in particular had increased enormously. Uniswap was responsible for almost half of the trading volume on the first day of the crash. The following day, the market share rose to 60 percent.

While trading volume has largely normalized since then, the overall numbers show that the DEXs will gain more and more traction among crypto traders in 2020. And yet they are still a drop in the bucket compared to centralized exchanges.

The general consensus currently shows that more and more investors are flocking to cryptocurrencies. It is believed that the rally has been largely influenced by private investors over the past seven weeks.

While the coronavirus pandemic and related economic problems are spreading fear among the population, people seem to be looking for alternative secure investments, such as Bitcoin and other cryptocurrencies.

Although the cryptos have correlated with the stock market in the past few weeks, these features, such as decentralization, immutability, and a limited supply, are features that no institution can change.