DEX trading volume reached a record $320.5 billion, surpassing November’s $299.6 billion.
Uniswap led DEXs with $103 billion in volume, followed by PancakeSwap and Raydium.
CEXs saw $2.78 trillion in spot trading, with Binance driving almost $950 billion in volume.
The trading volume of decentralized exchanges reached a new high in December, totaling $320.5 billion in assets. The analytical service THE BLOCK pointed out that this is higher than the previous record of $299.6 billion set in November. This large jump further indicates the steady growth of the decentralized finance (DeFi) markets and their future rise. It also indicates a higher level of interaction and activation within the space.
Leading DEXs by Volume
As per the platform, the largest decentralized exchange, Uniswap, had the highest volume of over $103 billion. PancakeSwap followed with $72 billion and remained the second-largest DEX in town. The decentralized exchange that sits at the top of the Solana blockchain, Raydium, had a trading volume of $54.6 billion, placing it at third. Other platforms, including Aerodrome and Curve, also posted very high volumes, which helped contribute to the volume.
Centralized exchange (CEX) also showed significant development, with a monthly spot trading volume of $2.78 trillion. This was the highest monthly total recorded since May last year, which means the trend remains to be on the rise. The rise was attributed to improved market conditions and increased trading activities as investors, both small and large capital groups, came back into the market.
The increased trading volume on both DEX and CEX suggests that the crypto market is gradually returning to a state of investor confidence. This has been attributed to the enhancement of trust in decentralized finance, increased market volatility, and the fact that centralized exchanges provide better trading tools. Analyst at Kronos Research Neal Wen stated :
“The surge in DEX and CEX volumes reflects renewed activity across the crypto market, driven by recent increases in volatility, growing trust in DeFi ecosystems.”
Binance Drives Market Growth
This surge can be attributed to Binance, the world’s leading exchange, which facilitated almost $950 billion in spot trades in December alone. Others also showed high trading volumes, including Crypto.com, Upbit, Bybit, and Coinbase, showing that centralized platforms are still a force to reckon with in the global crypto market. Such transactions are important when connecting the centralized and decentralized environments and increasing market liquidity.
The high trading volumes experienced in decentralized and centralized exchanges indicate a developing market for cryptocurrencies. With the increase in liquidity and developments in the DeFi sectors, the crypto landscape is poised for growth in 2024. DEX and CEX trading activities will expand significantly in the coming year.
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