CoinGecko: Uniswap Dominance Holds as Spot Volume Declines

Spot trading volume on top DEXs declined by 30.8% in Q2. Uniswap maintains dominance while other DEXs experience fluctuations in market share.

Uniswap Dominance Holds as Spot Volume Declines (1)
  • Uniswap remains the largest DEX, but spot trading volume decreased by 30.8% in Q2 compared to Q1.
  • The top 10 DEXs processed $155 billion in Q2, with Q1’s highest market share at $95 billion and Q2’s highest at $57 billion.
  • Various DEXs experienced fluctuations in market share, with some increasing slightly (Pancakeswap and Dodo) and others decreasing (Balancer and Sushi).

Despite Uniswap maintaining its position as the largest decentralized cryptocurrency exchange (DEX), crypto aggregator CoinGecko data shows that in the second quarter of the year the spot trading volume experienced decreased compared to the last quarter. 

Q2 DEX Trading Volume

The top 10 DEXs only processed $155 billion in Q2, a 30.8% decrease from Q1, according to the report. Q1’s highest market share was $95 billion in March, while Q2’s highest, in April, reached only $57 billion.

On average, January-March 2023’s total market volume amounts to approximately $72 billion while the average for April to June is only at around $51 billion.

Coingecko DEX Trading Volume
Source: Coingecko

“Despite memecoin season in full swing (majority launched on DEXs), volumes on DEX didn’t experience a noticeable uptick,” CoinGecko noted. 

Meme coins are a type of cryptocurrency created as a joke or meme, often parodying traditional cryptocurrencies. Their value is driven by popularity and social media hype rather than underlying technology or utility.

A report released by CoinGecko in May showed that the Philippines ranked fourth in the world in terms of interest in meme coins. The data revealed that 5.39% of Filipinos surveyed are interested in investing in and holding meme coins.(Read: Can Meme Coin Investors ‌Be Millionaires In Just 7 Days?)

Top 10 DEX 

According to Coingecko; these are the top 10 DEX for the first half of 2023:

  1. Uniswap

CoinGecko noted that Uniswap held its place as the biggest decentralized exchange (DEX), with its dominance reaching as much as 70% in May.

Uniswap is a decentralized cryptocurrency exchange on Ethereum, enabling direct token trading without intermediaries. Its liquidity pools facilitate trades, but scammers can exploit its decentralized nature by creating fake tokens and fraudulent trading pools, luring unsuspecting users to invest. 

In 2021 and 2022, two studies claimed that 97.7% of the tokens launched on the decentralized cryptocurrency exchange Uniswap are “using locking contracts that tend to become a rug pull or a malicious token eventually.”

The verified Twitter account of the Department of Health (DOH) Philippines was briefly hacked last April and used to promote a fake Uniswap airdrop.

  1. Curve

“Curve, which released its crvUSD stablecoin in May, also failed to see an uptick in volume. It ended June with 11% of market share,” CoinGecko reported.

Curve is a decentralized exchange for stablecoins. It offers low-slippage and low-fee trades, making it popular for DeFi users.

In 2022,  Curve.Finance suffered an exploit amounting to $570,000 when  its front end was compromised through an attack taking control of its nameserver.

  1. Pancakeswap

Pancakeswap’s average market share in the first quarter is around 5.6%; surprisingly by the next quarter it went up to 11%.

PancakeSwap is a DEX operating on the Binance Smart Chain (BSC), allowing users to trade cryptocurrencies directly from their wallets. It utilizes an automated market-making (AMM) model, relying on liquidity pools for trading facilitation, and rewards users with CAKE tokens for providing liquidity. 

  1. Dodo

Like Pancakeswap, Dodo’s market share also went slightly up as it went from 5% last quarter to 5.3% in the second.

DODO DEX is a DeFi platform that offers high liquidity, low slippage, and community governance. It operates on Ethereum and Binance Smart Chain, and uses a Proactive Market Maker algorithm.

  1. Balancer

Balancer on the other hand experienced a sip as its market share in Q2 went down to 2.3% from its 5.3% in Q1.

Balancer is a decentralized exchange and automated portfolio manager on Ethereum. Users can trade, swap, and provide liquidity for ERC-20 tokens without an intermediary. Balancer pools allow users to create and manage customizable liquidity pools with different weights. BAL token is used for governance and to earn fees.

  1. Quickswap

Quickswap’s market share in Q1 amounted to 1.6% then in Q2 it went  slightly up by 0.4%.

QuickSwap is a DEX and AMM powered by Polygon, which allows users to swap cryptocurrencies without the need for Know Your Customer (KYC) verification. The DEX operates on the Polygon network, a layer-2 scaling solution for Ethereum.

  1. Jupiter

By the first quarter of the year its share was at a constant 1% but in Q2 it went up a bit and currently holds 1.3% of the DEX market.

Jupiter is a major liquidity aggregator for Solana, offering the widest range of tokens and the best route discovery between any two token pairs.

  1. THORChain

Throughout the first half of the year, THORchain held 1% of the decentralized exchange market share. 

THORChain is a DEX and liquidity protocol that supports cross-chain swaps, enabling users to trade various cryptocurrencies directly from their wallets across multiple blockchain networks. It utilizes an AMM system and its native token, RUNE, for governance and liquidity incentives. 

  1. Sushi

In contrast to other DEXs that either increased or maintained their market share, SushiSwap lost 1.6% of its market share from the previous quarter, dropping to just 1% in the second quarter.

SushiSwap is a decentralized exchange that allows users to trade ERC-20 tokens without an intermediary. It offers additional features and incentives compared to Uniswap, and has become a significant player in the DeFi ecosystem.

  1. TraderJoe

TraderJoe held an average of 1.6% of the decentralized exchange (DEX) market share in the first quarter of the year. Although it maintained a 3% share in April, it lost market share in May and June.

Trader Joe is a decentralized trading platform operating on the Avalanche network, integrating DEX services and DeFi lending to enable leveraged trading. Users can engage in AMM exchange, participate in yield farming, staking, and borrowing through this platform.

This article is published on BitPinas: CoinGecko: Uniswap Dominance Holds as Spot Volume Declines

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