Decentralized exchange (DEX) volumes are surging to reach all-time highs, as another booming sector in the crypto space amid Bitcoin (BTC)’s surge.
Starting 2021 off with a bang, transaction volume on DEXs in January are set to break September 2020’s record highs. According to The Block’s report on January 16, DEXs record $26.01 billion volumes in this month so far, capturing the second-highest monthly volume on record.
By deploying smart contracts on blockchain networks like Ethereum, decentralized exchanges enable users to swap between cryptocurrencies without transferring tokens to a centralized exchange wallet or verifying their identity.
Decentralized exchanges like Uniswap, SushiSwap, 1inch, 0x, and others, exploded in popularity throughout 2020.
However, one of the biggest issues confronting DEX users continues to be the fees associated with Ethereum-based DEXs. In many cases, users have had to eat the associated on-chain trading fee, despite that the swap ultimately fails.