A recent report by Dune Analytics showcases the fact that the popularity of decentralized exchange aggregation platforms is becoming difficult to ignore and argue with.
DEX aggregators are specific crypto-driven platforms that aim to provide their users with the best trading rates for their favourite tokens. As the name may imply, these platforms aim to aggregate a wide variety of different decentralized exchanges, and thus, offer extended automated market maker functionality.
For the longest time, the general market sentiment was that crypto traders prefer some individual DEXs, depending on their popularity, token support, fee models, and other features. While that might have been the case for some time, with the emergence of DEX aggregators, it’s evident that the market sentiment has shifted.
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According to Dune, the three most-popular DEX aggregation platforms this year are 1Inch, 0x, and Paraswap. Together, these platforms have hit an all-time high of $6 billion in trading volumes, last week alone.
The most notable point here is that, while DEX aggregation platforms have been growing in popularity as time went on, they have seen a huge surge in the last couple of months. There has been an influx of trades on the three aforementioned platforms, which lead to an increase of trading volume by 50%, if you took November as the starting point.
1Inch has seen the biggest increase in usage, and is considered to be one of the most popular DEX aggregation projects on the current market. Following the platform, 0x is a pretty close second, while Paraswap is in third place.
This increased growth in DEX aggregator popularity showcases that crypto traders are actively seeking out fee reduction solutions, and are less-fixated on specific decentralized exchanges.
The fee-related point may be related to the gas fees of Ethereum-based transactions. Since most tokens traded on the above-mentioned platforms are ERC-20 (based on the Ethereum blockchain), they share ETH’s gas fees, which can be considered record-breaking, as of this point in time.
According to Dune Analytics, however, Uniswap remains the leader in the DEX market. The exchange takes up 79% of the total DEX market share. This emphasizes the point that, even with the significant gas fees, many traders still choose to trade ERC-20 tokens.
As we approach the end of the year, looking at the DEX aggregator charts, it would seem that more and more people are becoming interested in niche token trades, and are actively looking for ways to maximize their potential gains. The influx of trade volume may also be credited to traders moving from centralized (KYC-employing) exchanges, and general crypto literacy becoming more and more prominent around certain parts of the world.
