Decentralized Exchange Volumes Up 70% in June, Pass $1.5B

June trading volume on decentralized exchanges set a record high of $1.52 billion, up 70% from May.

AccessTimeIconJul 1, 2020 at 5:01 p.m. UTC
Updated Sep 14, 2021 at 8:58 a.m. UTC

June trading volume on decentralized exchanges set a record high of $1.52 billion, up 70% from May, according to data from Dune Analytics. This double-digit percentage growth is simply “the continuation of a trend dating back to the end of [2019],” Jack Purdy, decentralized finance analyst at Messari, told CoinDesk. 

Curve and Uniswap control the largest amount of traded volume, recording $350 million and $446 million, respectively, in June. Both protocols are automated market makers that can also function as decentralized exchanges. Balancer, a similar platform, recorded $93 million in traded volume, up 2,460% from $3.6 million in May.

CoinDesk - Unknown

Significant growth can be partially attributed to the “proliferation of automated market makers,” according to Purdy. As a result, these markets offer greater liquidity for “the tail end of crypto assets” and even occasionally less order slippage than centralized exchanges, Purdy said.

In June, automated market makers grew by more than 170% while pure decentralized exchange platforms grew by only 10%.

CoinDesk - Unknown

Monthly aggregate volumes for decentralized exchanges and automated market makers

Too much growth too quickly could be cause for concern, however, as decentralized exchanges still need time for continued development and stress testing. Recent increases in trading volume are “starting to become a bit worrisome,” Purdy said, adding that an “unnatural rush to deposit assets” into these exchanges is fueled, in part, by the “liquidity mining phenomenon.” 

Since January, aggregate decentralized exchange volumes, including automated market makers, have more than quadrupled from $276 million to $1.52 billion.

Even though popular decentralized finance protocols may be “highly audited and deemed safe,” plenty of potential attack vectors still exist, Purdy said. A decentralized liquidity provider, Balancer, lost $500,000 in a sophisticated attack Monday, for example. 

The number and varieties of potential attacks only increase as decentralized finance protocols become more intertwined, Purdy said.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


CoinDesk - Unknown
First Mover Asia: Bitcoin Holds Above $21K in Weekend Trading; Solana Web3 Phone Faces Long Odds

Ether stays over $1,200; prior blockchain phones have failed because the market has realized their functionalities are already available via apps that can be loaded onto any old phone.

CoinDesk - Unknown
CoinDesk - Unknown
Opaque Platforms and Intertwined Protocols Pose Big Risk to Crypto

Second article in a series about risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
CoinDesk - Unknown
Putin Weaponizes Inflation

Examining a recent propaganda speech from the Russian leader.

CoinDesk - Unknown
CoinDesk - Unknown
Morgan Creek Is Trying to Counter FTX’s BlockFi Bailout, Leaked Call Shows

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors.

CoinDesk - Unknown