In Q2 2023, the spot trading volume on decentralized exchanges (DEX) saw a significant downturn, dropping by over 28%. Uniswap, however, held its own, managing to solidify its position as the largest DEX for yet another quarter.
DEX Q2 Overview: Uniswap Remains Unchallenged
Despite signs of recovery during the later stages of Q1, trading volumes failed to sustain the upward trend in Q2. While centralized crypto exchanges bore the brunt of regulatory pressure, the decentralized counterparts weren’t spared the choppy market conditions either.
According to the latest data compiled by CoinGecko, Uniswap has managed to maintain its dominance in the space, amidst overall declining DEX volumes.
CoinGecko’s Q2 DEX Report: Key Highlights
The crypto data aggregator CoinGecko’s industry report noted that the spot trading volume across the top 10 DEXs totalled $155 billion in Q2 2023, marking a hefty 30% drop from Q1. Despite a memecoin resurgence led by the PEPE explosion in Q2, DEXs failed to witness a significant uptick in volumes.
Uniswap, in contrast, saw its trading volume gain traction. Its dominance surged as high as 70% in May, triggered by the US regulatory clampdown and a banking crisis leading to a de-pegging of the USDC stablecoin.
Volume Slump: A Closer Look at DEXs like TraderJoe and Curve
The report also revealed disappointing performances from other DEXs. Despite the release of the crvUSD stablecoin, Curve experienced a volume decline, ending June with just an 11% market share. TraderJoe, a Binance Smart Chain-based DEX, suffered a similar fate, concluding Q2 with a mere 0.3% market share.
Breakdown by Chain: Ethereum Still Leads, Arbitrum Climbs Up
Despite a waning dominance, Ethereum remains the favored chain for DEX trading, capturing 57% of the market share with a Q2 trading volume of $87.8 billion. Arbitrum followed suit, securing the second position with a 17% market share by the end of June. Binance Smart Chain (BSC) came third, followed by Polygon.
Despite the volatile Q2, these top four chains contributed over 95% of the total DEX trading volume, showcasing their enduring appeal amidst shifting market dynamics.