A Coming of Age for DEXs?DEXs have long been heralded as being the next step in the cryptocurrency market, bringing faster trades, negligible transaction fees, and greater security. However, the relatively complicated technical nature of the exchanges has prevented wider adoption, though some, like the recent release of 0x’s Matcha, have attempted to overcome that particular hurdle. DEX tokens have also outperformed centralized exchange tokens by five-fold, according to a report published by Messari. Compared to the exchange’s token average rise of 44%, DEX tokens have risen by 241%, with Kyber Network showcasing the highest gains at over 400%. The arrival of more streamlined DEX experiences and a new slew of features that promise higher-than-average returns have attracted new investors. Other trends that have accompanied the growth in DEX volume are increased stablecoin usage and a rise in locked funds in DeFi.
DeFi Underscoring Its Role as A Cornerstone of the MarketSeveral platforms and launches have contributed to the incredible surge of the DeFi space in 2020, not the least of which are yield farming programs launched by the likes of Compound Finance, Balancer, and Synthetix. bZx is also expected to launch a similar program. At the time of publishing, the total value in DeFi stands at $1.7 billion, according to Defi Pulse. While Ethereum’s price has gone sideways many expect the DeFi niche to spark price growth. That said, the related protocols are still relatively new, and developers and founders have warned that there is still much refining to be done. An exploit in the Balancer protocol recently led to the theft of $500,000 in Ethereum.
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