Rise of Uniswap & dydx: The Future of Crypto Trading is Decentralized

  • Trust in centralized exchanges is declining, driving users to decentralized solutions like Uniswap and dydx.
  • Uniswap and dydx witness a surge in trading volume but their tokens don’t see much growth.
  • Both protocols experience an increase in fees generated but a decrease in Total Value Locked.

Trust Declines for CEXs

The crypto community’s trust in centralized exchanges has slowly been declining over the last few months. The decline was kickstarted by the fall of FTX and has been exaggerated by SEC’s lawsuit against Coinbase and Binance. As a result, many users have moved to decentralized solutions for their needs.

Surge in Trading Volume on DEXs

Decentralized exchanges and derivatives markets like Uniswap and dydx experience a surge in trading volume and fees. However, the tokens of both these protocols do not see much growth. Whale interest and price witness a decline. Token Terminal’s data revealed a significant surge in trading volume within the decentralized derivatives market and exchanges. Uniswap and dydx emerged as the primary facilitators of this increased activity and volume. Artemis’ data highlighted a material increase in the number of addresses on these networks, contributing to overall growth.

Increased Fees Generated

This surge in volume could further translate to increased revenue for both Uniswap and dydx, as indicated by Token Terminal’s data. This indicated an 84.9% increase in fees generated by the dydx protocol, while 34.9% more was generated on Uniswap during this period.

Decrease In TVL For Both Protocols

However, the Total Value Locked (TVL) on both protocols experienced a decrease during this same period – 4.1% decrease on dydx, while 5.9% drop was seen on Uniswap during this time frame . The future of these protocols can be improved if more users join their NFT marketplaces, which have seen decreasing transactions recently as per Dune Analytics‘ data..

Launch Of Uniswap v4 Hold Promise

The launch of Uniswap v4 also holds promise for attracting new users . Hints from Uniswap indicate that it might offer various features such as staking rewards & flash loans which would attract more people towards its platform..