Overview of the development of DEX in the first half of the year: the rapid development of public chain who can hold the leader of DEX
With the improvement of public chain performance, DEX, an important infrastructure emerging in the DeFi world, will also show strong growth capabilities in 2021. Automated market maker (AMM) allows users to exchange between encrypted assets without an intermediary. More competitors continue to emerge in the DEX track. This article mainly starts from the data of Ethereum and Binance Smart Chain, and makes a macro comparison of the current DEX development from the following four perspectives.
1. Transaction volume
Dex cross-chain daily transaction volume (since January 2021) Data source: Footprint
DEX has always been the main application on Ethereum. With the rise of the DeFi project, the transaction volume of the entire DEX project has also risen rapidly since March this year, and it has doubled at the end of May. The rapid growth of DEX has also attracted regulatory attention. With the successive releases of blockchain policies in various countries, some bearish voices have also had a negative impact on DeFi. The transaction volume of DEX has dropped rapidly after May, but it will be similar to 2020. Ratio is still a breakthrough growth.
Dex cross-chain daily transaction volume market share (since January 2021) Data source: Footprint
The rapid development of DeFi has made the phenomenon of congestion on Ethereum more obvious, and the high gas fee has also been further amplified by the market. At this time, the Binance Smart Chain is trying to catch up with its relatively low Gas cost. According to the statistics on Footprint, the Binance Smart Chain has gradually increased in transaction volume since February this year, and its market share in the second quarter. It even surpassed Ethereum at one time.
However, the Defi project on Ethereum still dominates. Uniswap V3 launched the Alpha version on the Optimistic Ethereum mainnet in July. At the same time, as the Layer 2 solution was launched on Ethereum, the congestion situation has gradually improved, and Ethereum has renewed its transaction volume. Regain market share.
On August 5, 2021, Ethereum EIP-1559 completed the hard fork upgrade. Whether the proposal includes transaction fee destruction and many other benefits will further increase the market share of Ethereum. The answer will be revealed in the near future.
Ethereum Dex main platform monthly transaction volume (since January 2021) Data source: Footprint
Uniswap’s V2 and V3 accounted for nearly 50% of the transaction volume in July. Source: Footprint
Square has an Ethernet more DEX platform to Uniswap, Sushiswap, Curve, it represented the highest proportion of Uniswap on an Ethernet Square on both strands proportion of trading volume even to be nearly 50%. Judging from Footprint’s data, Uniswap V3’s transaction volume has been more than twice that of V2, and the performance of V3 has been quite outstanding since its launch.
The Binance Smart Chain is mainly based on PancakeSwap and MDEX. It is worth noting that PancakeSwap has become a strong opponent of Uniswap on the Binance Smart Chain. It has been occupying market share since February and reached its peak in April. However, as Uniswap upgraded to V3, Binance Smart Chain also experienced many problems after May. PancakeSwap’s market share was squeezed again. Uniswap’s market share returned to 50%. At the same time, Sushiswap also introduced bentobox and Ethereum. The competition with the Binance Smart Chain is still stalemate, and it remains to be seen who can eat the cake of DEX.
2. Token price
Token price (since January 2021) Data source: Footprint
The data on Footprint shows that starting from this year, most of the Dex platform tokens have maintained an upward trend until May this year. Among them, PancakeSwap’s token Cake has risen most obviously. It once surpassed UNI in May, and it has also reignited With the strength of the Binance Smart Chain, the platform and the chain have achieved mutual success. Although the currency prices of various platforms have plunged after June, Uniswap and PancakeSwap, the leading platforms of Ethereum and Binance Smart Chain, still lead the high positions.
As a DEX on the same Ethereum, Sushiswap is often compared with Uniswap. Although SUSHI holders can pledge their tokens in exchange for xSUSHI to obtain Sushiswap transaction fees, it is clear that the market is more optimistic about UNI from the perspective of currency prices.
Ethereum Dex platform token transaction fee / GWei (July 2021) Data source: Footprint
Any operation on the chain needs to consume variable Gas fees, which mainly depends on the amount of work required for the operation that needs to be performed. Currently, the contract related to token exchange is one of the contracts that consumes the most blockchain resources, so DEX It occupies most of the gas consumption on the chain.
According to Footprint statistics, among the tokens issued by Dex last month, the cost of converting to UNI was the most, which further reflects the market’s optimism about Uniswap.
4. Trading pairs
Dex trading pair (July 2021) Data source: Footprint
In July, the top 50 trading pairs on the DEX platform were ETH/USDC, followed by USDC/ETH. It can be seen that the main trading pairs still revolve around stablecoins and ETH, although various platforms have issued their own tokens. However, stablecoins and ETH are more recognized by the market.
Binance Smart Chain’s trading pairs anchored by WBNB (July 2021) Data source: Footprint
The main trading pairs on the Binance Smart Chain are also stablecoins and WBNB. In addition, the trading pairs anchored by WBNB account for the highest proportion of Cake.
Daily number of trading pairs (since January 2021) Data source: Footprint
From the perspective of the number of trading pairs with daily transactions, PancakeSwap surpassed Uniswap in number in March of this year, and the daily number has reached more than 20,000, while the number of Uniswap has remained stable, and the number of Sushiswap is at the bottom. It can be seen that PancakeSwap seems to want to win from the breadth.
According to the statistics from Footprint, there are only 1,750 Sushiswap trading pairs in the whole month of July, while Uniswap V2 has 16,534, Uniswap V3 has 3386, and PancakeSwap has 135278 trading pairs in July.
However, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have recently strengthened their scrutiny of exchange tokens. Access to coins.
After the DEX platform ushered in a rapid increase in the first half of this year, despite the impact of supervision and other aspects, the data has been hit hard, but the DEX platform led by Uniswap, Sushiswap and PancakeSwap still performed outstandingly. SushiSwap crazily eroded the market in the first half of this year. The competition between Binance Smart Chain and Binance Smart Chain is also continuing. The more advantageous Gas fee on Binance Smart Chain and the strong PancakeSwap, whether Ethereum can take the lead through EIP-1559 can be expected together in the second half of this year.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/overview-of-the-development-of-dex-in-the-first-half-of-the-year-the-rapid-development-of-public-chain-who-can-hold-the-leader-of-dex/
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