DeFi
Decentralized Exchange Market Share Hits Record High
Decentralized exchanges now account for over 14% of spot crypto transactions.
Decentralized exchanges (DEXs) are processing more transactions than ever, with the DEX/CEX spot transaction ratio at an all-time high of 14.22%, according to The Block, and reaching as high as 22% in the past 24 hours, according to DeFiLlama.
The increase in DEX dominance indicates a growing number of users buying and selling tokens on-chain and could be attributed to the growing popularity of memecoins, which typically do not trade on centralized exchanges until they reach a relatively large market cap.
At 14.22%, the DEX/CEX volume ratio is at its highest level since May 2023, when it reached 13.7%, and January 2022, when it reached 11.3%.
May 2023 is often considered the first “memecoin season” of this market cycle due to the dramatic rise in PEPE, and January 2022 coincided with the highest daily volumes in the NFT market. Notably, both of these “metas” required users to transact exclusively on-chain.
Besides the DEX/CEX ratio, Solana’s dominance is also reaching new highs. For the first time, Solana is set to surpass Ethereum in terms of monthly DEX volumes.
As of July 29, Solana DEXs processed a total volume of $52.3 billion for the month, while Ethereum According to DeFiLlama, DEXs processed $49.1 billion during the same period.
SOL has been significantly outperforming ETH as Solana catches up with Ethereum in terms of on-chain metrics. The SOL/ETH ratio has increased by 329% over the past year and by 28% over the past 30 days.