The volume of transactions recorded on decentralized exchanges (DEXs), running on Ethereum, has tripled since the start of 2019, according to a new report.
More than $300 million in transactions were made on DEX’s during June, up 248 percent from January, where just $86 million was transacted. The report was commissioned by DEX aggregator Totle and put together by a science-focused DAO called D5.
In contrast, says the report, the number of transactions has only grown by 74 percent during the same time period. This indicates that much larger transactions are being made. However, it's worth noting, that the price of ether has doubled during this time period, which does account for some of the growth in transaction volume.
Totle suggested a few reasons for this growth in DEX usage–beyond just price increases. First, it posited that users may be placing more faith in the current swathe of DEXs, thanks to a number of recent upgrades that have made them faster and removed problems like slippage—where large orders can move the price too easily. On this basis, believes the report, users may be more willing to move larger sums of money.
Second, it considered that the rise of decentralized finance (DeFi) apps may have played a part, too. DeFi apps such as MakerDAO have been gaining traction suggesting DEX usage may continue to increase.