Decentralized cryptocurrency exchanges based on the Ethereum blockchain platform recorded all-time high transaction volumes in February, according to data from Dune Analytics.
The decentralized exchanges, better known by the acronym DEX, recorded $372.2 million in transaction volume in the month, as first reported by The Block, up 62% from January's $229.2 million.
The highest ever transaction volume recorded by the DEXs, according to Dune Analytics, ahead of February was the $358.5 million posted in July last year.
Why It Matters
DEXs allow peer-to-peer trading of cryptocurrencies without intervention or moderation from centralized authorities. Such exchanges also typically have lesser know-your-customer requirements. Despite the fact that DEXs embody the very sense of the crypto industry, they have failed to attract a lot of volume compared to centralized exchanges.
The TRON network-based decentralized exchange desk of Poloniex, for example, recorded $501,732 in volume in the last seven days, according to Dapp.com, less than 0.1% of the $503 million transaction volume recorded on the centralized exchange.
Seven out of the ten largest decentralized cryptocurrency exchanges are based on the Ethereum protocol, according to data from Dapp.com, including dYdX, Kyber Network, and Uniswap.
Ethereum (ETH) traded 0.24% higher at $221.33 at press time on Monday. Bitcoin (BTC) was up 0.98% at $8,653.03.