SDEXs like Uniswap has carved out a niche, how will 2021 play out?

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The year 2020 saw the cryptocurrency market reach new peaks. It also led to the development of decentralized exchanges and provided the opportunity for them to carve out a niche in the previously centralized ecosystem. The torchbearer for the DEXs has been Uniswap, whose growth astounded the whole crypto market.

Even though an increased on-chain volume is expected for DEXs as every trade involves an on-chain transaction, Uniswap was leading among DEXs. The progress of DEXs can be visible in the on-chain ETH flows highlighted below.



Source: Our Network

Along with decentralized exchanges, the surging market also gave way to stablecoins to flourish in terms of volume. According to a report, the on-chain volume for stablecoins reached a new monthly high in December 2020 of $178.34 billion. This peak suggested a 20% increase from the previous months’ volume.

Whereas compared to the previous high witnessed in September 2020, this was 11.3% or $18.16 billion higher. Tether [USDT] has been an important stable coin whenever BTC rallies and held 71.2% of the stablecoin volume. USD Coin [USDC] and DAI followed with 16.2% and 6.4% respectively.

As Bitcoin and the crypto market continued to rally in 2021, the net inflow of stablecoins to exchanges has been noting a rise every single day, except on 2 January.



Source: Our Network

The chart above showed the last 6 months of net exchange flow of ERC-20 stablecoins. 

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