Highlights

Decentralized crypto exchanges (DEXs) continue to grow in popularity. Over the past 12 months, more than $720 billion traded on DEXs. Additionally, in 2022, there were at least 20 new funding rounds for DEXs — a sure sign that institutional investors see great potential in these platforms.

In this article, we’ll take a closer look at the current data and statistics on DEXs to get an overview of current trends.

DEX Market Shares & Trading Volumes

According to Coingecko, about 370 decentralized crypto exchanges are currently in existence. The top ten DEXs account for more than 3/4 of the total DEX trading volume.

UniSwap (including V2, V3, Abitrum One, Polygon, and Optimism) accounts for more than half (55%) of total DEX volume, making this protocol by far the largest DEX at the moment.

The snapshots for these charts were taken on the 24th of February 2023.

While these individual market shares vary little from day to day, total DEX trading volumes fluctuate considerably. Uniswap is the only protocol that can hold a candle to the large centralized exchanges in terms of volume.

Even with their small market share of around 3% compared to CEXs, DEXs are recording huge cash flows.

Competition Between DEXs

In addition to their decentralized structure, many users choose decentralized trading platforms because they support a large number of different cryptocurrencies. For example, UniSwap V3 currently supports trading 944 individual coins and tokens. This is significantly more than what the biggest CEXs offer: Binance (386 coins) and Coinbase (242 coins).

When we look at the top 20 DEXs by trading volume, we can see that there are huge differences in the number of supported cryptocurrencies and trading pairs.

Let’s look at a few in detail.

As different protocols trade different cryptocurrencies, it is worth noting that many DEXs do not cannibalize each other too much.

DEX Revenue, TVL & Prices

The growing popularity of DEXs is also reflected in their earnings. The following chart from Tokenterminal illustrates the daily fees generated by individual DEXs over the last 6 months.

It becomes apparent that larger DEXs in particular are recording decent revenue despite the bear market. Since January 2023, the numbers have generally been increasing — albeit at different rates. This is a sign that the market as a whole seems to be recovering.

Viewed over a longer period, we see that, similar to other sectors in the crypto space, DEXs have not been spared from the bear market.

But the next chart on total value locked (TVL) in DEXs shows (despite heavy losses) that these platforms are still well positioned.

This is also reflected in the respective token prices, which display a very similar course to the above chart.

This is in large part because DEX prices are highly correlated with Bitcoin:

But here, too, the bottom seems to have been reached.

Since June 2022, the platforms listed in the chart above have gained an average of 40–50% in value. The upcoming bull market could further fuel this positive development.

Conclusion

Let’s summarize.

Decentralized exchanges have become an indispensable part of the crypto sphere in recent years. This is evidenced, among other things, by the data presented in this analysis, which demonstrates the healthy development of these platforms.

Against this background, existing problems should not be forgotten — for example, users have lost more than $600 million in funds due to DEX contract vulnerabilities in recent years.

Apart from that, the overall development is very positive. It can be assumed that decentralized platforms will become even more important in the future.

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