Decentralized Finance (DeFi) began in 2021 when the cryptocurrency sector took the storm and helped propel the beef market cycle to the top as traders took advantage of user-friendly cryptocurrency trading methods and reaped high returns on their collective fees.
Finally, higher fees on the Ethereum (ETH) network and some strong market selling contributed to the decline in token prices and DeFi transactions that began in late February, but this trend seems to have changed in the last week as activity. on decentralization. the exchange is increasing again. …
Comparison of the size and volume of DEX users. Source: DappRadar
As shown in the chart above, Decentralized Volume (DEX) increased in late February, followed by a downward trend in the first week of April when total DEX trading volume fell to $ 603 million on April 4.
The increase in users in mid-March was in part due to a significant rise in the popularity of non-mushroom codes (NFTs), and the end of this mania was marked by a sharp drop in the number of users seen since March. March 26 and 27.
Bitcoin falls on DEX fuel
A possible explanation for the increase in DEX activity in recent weeks can be found by comparing the volume charts to the Bitcoin (BTC) price chart, which points to a possible link between the fall in BTC price and increased trading activity.
4-hour BTC / USDT chart. Source: TradingView
Due to the decline in the bitcoin price from April 6 to 8, DEX volume began to rise and peaked on April 7, when the BTC price was at its lowest and was preparing to rise.
After the Bitcoin price peaked at $ 64,840 on April 14, it plunged into a downtrend that continued until April 24, when the asset remained locked below $ 50,000.
DEX volume has increased significantly since April 18, the same day Bitcoin prices fell 16% from $ 60,900 to $ 50,500, and has remained high since then, indicating that traders may be switching from Bitcoin to alternative currencies such as Best. The cryptocurrency is going through a short retracement phase, traders hope.
DEX daily volume. Source: Dune Analytics.
As shown in the chart above, the daily DEX volume reached its highest level in several weeks on April 22, when the broader bitcoin and cryptocurrency markets saw a significant decline, causing the total market value to fall more than $ 324 million.
As Bitcoin is now trying to recover support levels at $ 50,000, and much of the altcoin market is now in falling selling prices after declining from recent highs, decentralized stock market activity could signal an upcoming altcoin season that has historically looked for direction after pulling back from all-time highs. …