According to a recent industry report from TokenInsight, the volume of trading on the decentralized exchanges, or DEX, was $ 42.6 billion in the third quarter of 2020, 1,132% from the previous quarter.

However, the numbers were slightly lower than their September highs in October, when bitcoin (BTC) prices began to rise, drawing the attention of traders again after the rise in decentralized financing, or DeFi, in recent months.

Sales in July alone reached $ 5 billion, a third more than the entire quarter. Monthly volumes continued to increase in the third quarter, showing an average monthly growth of over 140%.

The share of volume among the ever-increasing number of competing DEXs was still quite concentrated, with up to 50% of trading taking place on UniSwap, and nearly three-quarters of it on the top three exchanges.

However, eight decentralized exchanges trade volume exceeded $ 1 billion in the third quarter, up from zero in the previous quarter.

One of the driving forces behind this increase in volume, according to the report, is the “wealth effect” caused by the DEX, which opened up the “market between primary and secondary”.

According to TokenInsight, this can give the average user access to high-end projects before they hit secondary markets, and this is especially noticeable during DeFi’s obsession.

In addition, the emergence of DEX changed the relationship between symbolic projects and central exchanges. In the past, this has been heavily biased in favor of exchanges, which would require large payments to be included with tokens.

DEX provides a market beyond this where enterprises can thrive without the support of a massive central exchange.

Even with the reported growth in trading volume on the DEX in the third quarter, it still represented only 1.24% of the total volume of transactions in the spot market during this period.

Source: CoinTelegraph