The cryptocurrency market has been undergoing a rough patch in 2022. After experiencing massive growth in late 2018, the crypto sector is currently mired in a bear market that shows no signs of abating. But amidst all this gloom and doom, there are some bright spots to be found as more people start migrating towards decentralized exchanges (DEXs). For instance, Compound—a DeFi platform that enables users to earn interest on their USD-stablecoin (USDC) or other cryptocurrencies—has seen an uptick in users since August 10th when it announced its partnership with USDC stablecoin issuer Circle Internet Financial Ltd.
The crypto market has been in a tizzy lately. From the collapse of Ftx and Cex to Binance’s recent hack, it’s clear that this isn’t the best time for most cryptocurrency investors.
DeFi Looking To Prosper
And yet, many DeFi platforms are still seeing record profits this week. Why? Because people are looking for alternative ways to store their funds in the wake of CEXs closing down or being hacked. Compound, Yearn Finance and other DeFi projects have stepped into this gap with high-yield loans on offer (up to 20% ROI) that allow you to earn money without having any capital locked up in your wallet or sitting idle on exchanges. This is why we’ve seen such an uptick in interest from investors who want their money working for them instead of just sitting around doing nothing!
On Sept. 13, the decentralized exchange (DEX) aggregator 1inch announced that it had experienced a record trading volume in August with $2 billion worth of transactions. According to CoinMarketCap, this made its daily turnover larger than that of Binance and Huobi Pro.
The data from CoinMarketCap indicates that the majority of its volume came from DEXs: IDEX has 55% and Forkdelta has 25%. However, it also trades on centralized exchanges such as OKEx and Huobi Global.
IDEX is one of the oldest DEXs in existence with over 300 tokens listed on its platform. Its trading volumes have spiked significantly since Feb 2019 when crypto markets slumped following a prolonged bear market. The highest 24-hour volume reached $28 million but dropped below $5 million after BTC’s price plunged by 30%.
