DEX volumes continue to surge even as Bitcoin and altcoins correct
Decentralized finance (DeFi) emerged in 2021 and has taken the cryptocurrency sector by storm, helping to accelerate the market’s bull run as traders take advantage of opportunities to trade cryptocurrencies easily and earn high returns on their stacks.
Finally, high commissions on the Ethereum (ETH) network and several sharp sell-offs in the market contributed to the decline in token prices and DeFi transactions that began in late February, but this trend appears to have reversed over the past week as activity on decentralized exchanges picks up.
Comparison of DEX users and volumes. Source: DappRadar
As the chart above shows, trading volume on decentralized exchanges (DEX) peaked in late February, followed by a downward trend in the first week of April, when total trading volume on all DEXs fell to $603 million on April 4. April has fallen.
The mid-March increase in users was partly due to an explosion in the popularity of non-fiction tokens (NFTs), and the end of that frenzy was marked by a sharp drop in user numbers between March 26 and 27. Marked in March.
Bitcoincollapse sparks DEXactivity
One possible explanation for the increased activity on DEX in recent weeks is the comparison of the volume charts with the price chart of bitcoin (BTC), indicating a possible correlation between price declines of BTC and increased trading activity.
4 hour chart BTC/USDT. Source: TradingView
When the price of Bitcoin went from six to eight. In April, volume on the DEX began to rise to a record high on April 7. April peaked just as the price of BTC was rising and preparing to rise.
After the price of bitcoin fell at 14. After peaking at $64,840 in April, it entered a downtrend that lasted until the 24th. April stopped when assets fell below $50,000.
DEX volume has increased since the 18th. It rose sharply in April, on the same day that the price of bitcoin fell 16 percent from $60,900 to $50,500, and has remained high ever since, suggesting that traders may be migrating from bitcoin to Alkoter now that the leading cryptocurrency is going through what will hopefully be a brief correction phase.
Daily amount of DEX. Source: Dune Analytics
As can be seen in the chart above, daily DEX volume reached a record high on the 22nd. April saw a multi-week high when bitcoin and the broader cryptocurrency market experienced a significant drop, causing total market capitalization to fall by more than $324 million.
Now, while bitcoin struggles to regain support of $50,000 and much of the altcoin market is in a severe depression after falling from recent highs, decentralized exchange activity could be an indication of the upcoming altcoin season taking shape historically as bitcoin searches for direction after retreating from a new all-time high.
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