In what looks like a repeat of the 2020 decentralized finance boom period, the exchanges I’m the sector have set off bangers coming into 2021. If the present details in the industry are considered, then the exchanges are well in course to surpass their previous all-time high volume count.
According to experts and analysts, this recent surge is being triggered by the two leading digital assets’ explosive performance in the crypto sector, Bitcoin and Ethereum. While Bitcoin is well on course to hit $40,009 according to a specialist in the industry, Ethereum is placing well over the $1,200 mark.
Transaction volume close in on $29 billion monthly high
According to several records, decentralized exchanges like Uniswap and Curve Finance are taking charge of the explosive rate of transaction volumes, which is now totaled to be around $27 billion in just 15 days into the new year. Notably, this performance is only second to the highest ever amount of transaction volume recorded in September 2020, which was $29 billion.
This means that the chances of beating this record are very high for the decentralized exchanges because we still have more than ten days to go before this month wraps up. If they continue at this rate, the decentralized exchanges might as well finish 2020 with a massive volume record of $55 billion; half the total volume count recorded last year.
Things seem pretty much like decentralized exchanges are trying to force their way back into the spotlight after they were overshadowed by Bitcoin’s rapid rise in the past few weeks. Decentralized exchanges provide basic services that most centralized exchanges offer, except that users can swap tokens without the need to transfer to the exchange.
Also, users are not mandated to verify their identity because they use smart contracts to carry out their activities in the sector. The decentralized exchanges gained fame across the crypto industry when they finished 2020 with a massive $120 billion transactions volume because they could only manage about $3 billion in 2019.
Uniswap contributed 45% to the total transaction volume
After their stellar performance since the second quarter of last year, the exchange and protocols started to recede as people began to preach the Bitcoin gospel. While the decentralized finance sector was losing faithful, Bitcoin gained more followers, which led to the sporadic rise of the leading digital asset.
Around October till the end of 2020, decentralized exchanges began to record low turnouts in transaction volumes since everyone was trying to get attacked to Bitcoin and scoop up profits that the digital asset had to offer. With Bitcoin slowing down presently, users of decentralized exchanges are now returning, and the sector has picked up where it left off around October last year.
Loan services have announced a high turnout of users on their platforms, which has seen them record a massive $175 million transaction volume since the beginning of the year. Uniswap is still leading the charge, with the exchange adding nothing less than 45% to the total transaction volume count.