Decentralized Exchanges Saw More Growth in Q3 2020 Than Centralized Exchanges

The entire third quarter of 2020 has been all about the decentralized finance (DeFi) sector and the yield farming craze that occurred in this industry. In Q3, the growth of the whole DeFi sector was on a significant rise. As the DeFi boom continued to rise, the decentralized exchanges (DEX) witnessed potential growth as well in the third quarter. According to a new report, decentralized exchanges grew higher in Q3 than that of centralized cryptocurrency exchanges.

DEX witnessed more growth in trading volume than CEX

The famous cryptocurrency data aggregator site CoinGecko has shared a new quarterly report for Q3 2020 in which it has talked about the developments that occurred in the cryptocurrency industry in this quarter. As per the report, decentralized exchanges have witnessed huge growth as compared to centralized digital currency exchanges.

Decentralized exchanges saw their trading volume skyrocketing in the third quarter while on the other hand, centralized crypto exchanges witnessed a significant reduction in their market share. Mostly, decentralized exchanges’ trading volume surged in August and September. The total trading volume of DEXs in the month of July was $3.8 billion.  However, it surged to $12.6 billion and $30.4 billion in August and September respectively. This clearly indicates to the explosive growth of decentralized exchanges in the third quarter.

While on the other hand, centralized exchanges saw their total trading volume slightly going down in the month of September. Their total trading volume in the month of August was $314.6 billion while it decreased down to $300.2 billion in September.

Uniswap was one of the prominent exchanges in the DeFi sector

CoinGecko’s report further revealed that the top-ranked decentralized exchange Uniswap was one of the most prominent and dominant DEXs in the decentralized finance space in the third quarter.  Out of the total DEX trading volume of $3.8 billion in July, Uniswap counted for approximately 47 percent. While in September, it had a share of 63 percent out of the total trading volume of DEXs.

Because of its outshining performance, Uniswap was able to overtake the top cryptocurrency exchange Coinbase in terms of the 24-hour trading volume. Moreover, recently, it also gained mainstream media attention when it was labeled as “the most sought-after cryptocurrency exchange” in a report by Bloomberg.