The only possible explanation for the increase in DEX throughout the last week can be attributed to Bitcoin. One needs to compare the chart of volume with the price chart that BTC has- for that would imply a correlation between the increase in DEX trading activity and the fall in the price of Bitcoin.
With the price of this cryptocurrency falling from the 6th of April to the 8th of April, the volume of DEX had it easy- for it started increasing until it reached its peak on the 7th of April. This happened at the same time the price of BTC was climbing higher.
DEX Climbs as Bitcoin Falls
With the price of Bitcoin reaching its peak on the 14th of April at a value of $64,480, the cryptocurrency started falling downwards which continued till the 24th of April. This led to the assets of this cryptocurrency going below $50,000. This correlated with the volume of DEX which ended up seeing quite a major increase that began on the 18th of April- incidentally the same day that BTC experienced a major pullback in its prices from a value of $60k to a value of $50k.
The volume of DEX seems to be increasing even now- as most traders are looking towards moving out of altcoins and other cryptocurrencies. This has been thought to be a brief corrective phase.
The volume of DEX reached its highest level on the 22nd of April, as most of the other cryptocurrencies in the market went through a significant downturn. This also saw a fall in the market cap of the crypto market by around $324 million.
Now, as Bitcoin is struggling to get back to that level of $50,000, and most of the altcoins in the market are proceeding at prices that are fire-sale, most of the decentralized exchange is definitely going to hint at a season of altcoin. This will be a very historical situation for DEX with Bitcoin looking for options as it experiences a major pullback from its highest prices ever.
