Decentralized Exchanges surpass Centralized Exchange volume in Q3

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The rise of Decentralized Finance in 2020 has been one of the most trending crypto stories in recent months.

According to the latest report from crypto data aggregator CoinGecko, Decentralized Exchanges (DEX) surpassed Centralized Exchanges (CEX) in the third quarter of 2020 based on their trading volume.

1/ Hey Gecko fam!

We hope you’re ready for some great findings because our Q3 report is officially out! We’re excited to share our thoughts and insights with you.

👇Scroll down the Thread for a sneak peek. pic.twitter.com/JpIk3954Zo

— CoinGecko (@coingecko) October 9, 2020

DEX hit record volumes

The CoinGecko report noted that DEX’s experienced massive growths in trading volume which resulted in a reduced market share for Centralized Exchanges (CEX). According to the provided data, there was an 88% increase in the DeFi sector resulting in $155 billion in total trading volume.

August and September were the peak periods with DEX’s surging in volume from $3.8 billion in July to $30 billion in September. This was due to the increasing awareness within the DeFi sector and centralized exchanges growth actually declined in September. Despite this, centralized exchanges still hold a bulk of trading volume with a 94% market share, but the rise of DEX has been impressive nevertheless.

Uniswap and Curve lead the way

The report further analyzed the top 10 DEX and their market share. Uniswap led the way and continues to be the most used DEX within this period.

5/ In Q3, the top 10 DEX grew substantially by 700%, about $30.4 billion in the month of September, greatly outperforming CEX which grew ~70% in the same period. 👀@UniswapProtocol dominates with a 63% market share, while @CurveFinance has a 17% market share. pic.twitter.com/apcrBwPXo7

— CoinGecko (@coingecko) October 9, 2020

Its volume rose from 47% of the $3.8 billion total market trading volume in July to 63% of the $30.4 billion in September.

Curve another DEX follows with 17% of the market volume dropping from its initial market share of 24% in July.

Controversial DEX SushiSwap was also highlighted in the report. SushiSwap was credited with its role as a major player in the space. The project started as a clone of Uniswap and took a chunk of Uniswap liquidity during its initial launch. However, the controversial moves by its lead developer Chef Nomi lead to a series of unsavoury developments that stagnated it’s initial growth.

Despite these problems, SushiSwap accounted for 8% of the total DEX trading volume in September.

The report further hinted that it remains to be seen if SushiSwap could continue to grow in the ever competitive DEX ecosystem.

Uniswap and Curve further cemented their positions as leading DEX’s, but it remains to be seen if SushiSwap can continue to grow its market share.

DEX growth is great for the crypto ecosystem and shows the potentials of blockchain technology in the finance sector.