Crucial Ethereum Milestone: A Major DEX to Hit $1B in Volume

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Sat, 03/07/2020 - 11:45
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Joseph Young
Kyber Network, a decentralized exchange (DEX) on top of Ethereum, is expected to hit $1 billion in volume in 2020.
Crucial Ethereum Milestone: A Major DEX to Hit $1B in Volume
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Kyber Network, a decentralized exchange (DEX) that operates on top of Ethereum, is expected to hit $1 billion in volume in 2020, says D5 founder Alex Svanevik.

“Kyber Network will hit $1B traded volume in 2020, easily” he said.

DEXes have performed strongly in general over the last several months, driven by the rapid increase in demand towards decentralized finance (DeFi) platforms such as Maker, Compound, and Synthetix.

Most DEXes on Ethereum likely to hit $1 billion in volume, one expert says

In February 2020, dYdX—a decentralized margin trading platform based on Ethereum, processed more than $160 million in monthly volume, Antonio Juliano, the founder of dYdX, said.

Data from DEX 24 Hour Bot shows that Kyber Network, Uniswap Exchange, and Oasis DEX did $138 million, $132 million, and $99.7 million in February respectively.

Based on that statistic, Set Protocol director of marketing and ethhub co-founder Anthony Sassano said that he expects all major DEXes to see over a billion dollars in volume.

“I'm predicting $1 billionl total DAILY volume across all DEXs,” Sassano said.

Earlier this year, Sassano stated that total daily DEX volume will surpass $1 billion at some point in 2020, which would be around the size of the combined monthly volume of all top DEXes on Ethereum.

Sassano’s optimistic predictions arise from the anticipation for a strong ETH 2.0 phase 0 launch, and the noticeably high demand for DeFi.

He explained:

“My belated 2020 predictions for Ethereum: Eth2 Phase 0 will have a strong launch; Total daily DEX volume will reach $1bil USD -USD locked in DeFi will exceed $5bil; Scaling/layer 2 tech will rapidly mature; At least 20% of ETH/token transactions will be done privately.”

DeFi is driving most of the growth

According to official numbers from DeFi Pulse, the total value in USD terms locked in DeFi platforms has already surpassed $1 billion.

Related
DeFi (Decentralized financial applications) Funds Reach Close to 1 Billion USD

Total value locked in DeFi using Ethereum surpasses $1 billion
Source: https://defipulse.com/

The majority of the locked funds, which rely on Ethereum as collateral, are placed in Maker, Compound, InstaDApp, and dYdX, all of which are either decentralized lending or margin trading applications.

As long as the DeFi market continues to see exponential growth as it has since mid-2019, decentralized exchanges and margin trading platforms are naturally likely to see a gradual increase in volume.

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About the author

Joseph Young is an analyst based in South Korea that has been covering finance, fintech, and cryptocurrency since 2013. He has worked with various recognized publications in both the finance and cryptocurrency industries.

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