New data from crypto analytics service The Block shares interesting statistics from the DEX or the decentralized exchange industry. The new report reveals that DEX, on the whole, facilitated $56.47 billion worth of transactions for July. The major part of this transaction was viewed on Uniswap.
Uniswap is a decentralized exchange platform on top of the Ethereum network. Around 65% of the total monthly transaction traffic was contributed by its two subsidiaries V2 and V3. Investors on Uniswap V2 conducted transactions valued at $10.6 billion. On the other hand, the investors took to Uniswap V3 for creating a 30 days trading volume of $26.57 billion.
Decentralized Exchanges may Face Regulatory Pressure from State Authorities
The DEX platforms are becoming more crowded and popular among crypto investors as the regulators in many countries are introducing new rules. According to many people and activists, crypto trading and blockchain stand for safeguarding the privacy of users and allow them a chance to make financial transactions without getting detected.
However, regulators are raising concerns over the increasing number of scams and frauds that are facilitated by these forums. Many regulatory representatives have connected the DEX platforms with providing services to terrorists, money launderers, white-collar criminals, scammers, and fake business enterprises. Many IT experts claim that, like Dark websites, DEX can operate underground without requiring approval from centralized authorities.
The number of monthly transactions is lesser in comparison to last month’s analysis. For June, the total monthly transaction volume for DEX was valued at $80.85 billion. However, the peak month in 2021 for DEXs in terms of monthly trading volume was May. In May, the index went as high as $162.2 billion. This is the same time when Uniswap V3 was introduced to the public investors.
Spot trading is trading of a particular asset class on a specified date with a promise of instant deliverance. Statistical projections by Data Dashboard indicate that the spot trade volume for DEX has increased in July in comparison to the previous month. Some analysts claim that this is another bullish sign for the crypto market in general.