Where there is smoke, there is not always just fire. Occasionally, there is a cataclysmic, pyroclastic explosion, pushed forth by pent up energy finally given the outlet needed to erupt.
In many ways, that is what we are seeing today with decentralized exchange trading. Cryptocurrency and decentralized finance (DeFi) enthusiasts have pushed bitcoin to all-time highs (with some ups and downs along the way)—to a degree many predicted would never be possible. Yet, there are many other forces at play in today’s DeFi ecosystem that have prevented alternative coins and smart contract projects from experiencing the growth they would have otherwise achieved. Changes in the regulatory environment, complexity in trading protocols, and fractured access to innovative smart contract projects not only slowed progress and adoption in the industry, they allowed pressure to build in the form of burgeoning market interest without the right solution to meet it. Enter decentralized exchanges (DEXs).
Just how hot are DEXs and ShapeShift’s DEX mobile platform?
Dune Analytics reports $62B in transaction volume through decentralized exchanges over the past 30 days. To put that into perspective, 2019 volumes for the entire year were only $3B; 2020 volumes skyrocketed to $120B. This astounding 3,900% growth from 2019 to 2020, while impressive, is only the beginning: the DEX transaction volume we have seen in the past 30 days is half the volume of the entirety of 2020. We think it’s safe to say DEXs are molten.
At ShapeShift, the announcement of our new DEX offering was met with a river of warm responses from our users thanking us for providing the service, free of Know Your Customer (KYC) requirements, which has allowed us to stay true to our mission of providing self-sovereign financial solutions. And the proof is in the numbers: In the hours after launch, ShapeShift saw a huge spike in initial trading through our DEX integration. Over the following 45 days, post-launch growth continues with a 200% increase in trade activity and a 300% increase in volume overall.
What are the advantages of DEXs?
DEXs offer thousands of trading pairs: users get the opportunity to get involved with newly emerging projects early, scan for optimal pair combinations, and search for the best rates. They provide the greatest ability to self-govern the user’s financial path while maintaining the promise of crypto: immutability, trustlessness, and censorship resistance. DEX trading allows users to trade without a central intermediary—users trade with other users, thus ensuring greater privacy. No central authority keeps a user’s private keys, unlike with central exchanges.
Why ShapeShift for DEX trading?
While there are many DEXs, ShapeShift enables users to scan across multiple DEXs to find the best rates and trading pairs through a single, mobile interface (and, it will be coming to our web platform soon!). Unlike other similar services, we don’t charge fees on DEX trades.
Users also gain significant advantages from trading with ShapeShift: they can earn FOX Tokens back on every trade, which qualifies them to earn Rainfall awards—every time someone trades, someone wins free USDC. We announce hundreds of winners every day.
This move into DeFi through DEX trading is laying the foundation for ShapeShift to enable customers to explore the many advantages of decentralized finance. Look for more to come in the future!
There is time to get in on the action: start DEX trading today!
If you are still using centralized exchanges and are intrigued with other emerging projects, or are already trading on a DEX and want to open up the possibilities of scanning multiple DEXs through a single interface, we invite you to download our mobile application today!