The current status of DEX from the data: transaction volume increased by 100% year-on-year, and the weekly transaction volume reached 17 billion US dollars. Is everything getting better again?
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Despite the decline in DEX trading volume from its 2024 peak, it still hovers around $20-25 billion per week, a 100% increase compared to last year.
Author: OurNetwork
Translator: TechFlow
DEXs
Uniswap | PancakeSwap | Raydium | Let's F***ing Joe (Trader Joe)
El Barto | Dashboard
DEX Trading Volume Up 100% YoY; Reaches $17 Billion Weekly
- Although the trading volume of decentralized exchanges (DEXs) has declined from its 2024 peak, it still hovers around $20-25 billion per week, a 100% increase compared to last year. Solana and Base have contributed significantly to the trading volume, with Solana's trading volume growing more than 20-fold from $170 million to $4 billion. The only blockchain that saw a decrease is Ethereum, with a weekly trading volume decline of around 20%.
Artemis
- DEX trading is now more intense than a year ago, when Ethereum accounted for nearly 60% of the market trading volume. Currently, more than 10% of the market trading share is held by five blockchains. Ethereum remains the largest blockchain, accounting for 29%. Base has seen a significant increase in market share during 2024, now accounting for over 12% of DEX trading volume across all chains.
Artemis
- There have also been significant changes in the trading venues. Uniswap's trading share has declined to 33%, down from 53% previously. Meanwhile, mature DEXs like Solana-based Orca have increased their market share, and the new exchange Aerodrome has also gained popularity.
defillama
Uniswap
Matías Andrade Cabieses | Website | Dashboard
Uniswap Generated $26.4 Billion in Fees Over the Past Year
- One of Uniswap's most attractive features is that it allows liquidity providers - the users who provide assets for traders - to earn revenue. The chart below shows the fees generated by V3 pools over the past 12 months. The USDC-WETH pair performed the best, generating over $4 billion in revenue for liquidity providers (LPs). Uniswap V3 offers multiple fee tiers to charge traders - 0.01%, 0.05%, 0.3%, and 1% - providing flexibility for LPs and traders, with similar assets like stablecoins typically charged lower fees. These tiered fees allow LPs to optimize their returns based on the volatility and trading activity of the assets.
Coin Metrics
- In Uniswap V2 liquidity pools, the WETH-USDT pool performed the best in terms of fee collection, exceeding $1 billion, followed by the USDC-WETH and PEPE-WETH trading pairs. While V2 was simple, the concentrated liquidity feature of V3 has attracted larger trading volumes due to its higher capital efficiency and lower fees.
Coin Metrics
- Although Uniswap has generated significant revenue for liquidity providers (LPs), the $UNI token is only a governance token, lacking mechanisms like token burning that could potentially increase its value. 60% of UNI was distributed to the community in 2021. This $UNI HOLD Wave chart shows some interesting trends.
Coin Metrics
Trading Highlights: This transaction shows the transfer of 500,000 $UNI (around $3.5 million) from Uniswap's time-locked contract, which is part of their distribution mechanism. This system ensures gradual token distribution, aligns with long-term interests, and provides transparency. Analyzing these transfers can provide insights into the progress of the distribution, potential market impacts, internal behaviors, possible changes in governance power, and the overall health of the protocol.
PancakeSwap
Seb | Website | Dashboard
PancakeSwap's $CAKE Supply Decreased by 7.8 Million in a Year
- PancakeSwap is a decentralized trading platform that originated on BSC and now operates on multiple blockchains - the DEX issues the $CAKE token as a reward for liquidity providers (LPs). In 2023, PancakeSwap adopted a deflationary model to optimize its token economics. This was achieved through a reduction in issuance and a mechanism to buy back $CAKE from the market. Their efforts quickly paid off, as the CAKE supply reached a peak of 391.3 million in August 2023. Since then, the supply has steadily decreased, reducing by 7.8 million tokens over the past year.
X - Sebabesse
- To achieve this deflationary goal, PancakeSwap burns CAKE tokens weekly by sending them to a burn wallet on the BNB Chain. According to their token economic model, they burn an average of 9 million CAKE per week. The reduction in issuance and market buybacks offset the minting.
X - @Sebabesse
- The deflationary rate is influenced by market factors such as trading volume and CAKE price. Over time, the range of the deflationary rate has varied from 1.4 CAKE to 0.2 CAKE per block. Based on the current token economics, the weekly supply reduction requires a market buyback of 275K CAKE, which is nearly achieved every week.
X - @Sebabesse
Trading Highlights: The team wallet performs the token burns weekly. Monitoring these transactions is all the information needed to track the CAKE supply.Raydium
0xINFRA | Website | Dashboard
Raydium's Buyback Exceeds $35 Million Since January 1
- Raydium is the leading decentralized exchange (DEX) on Solana by market share and liquidity pool creation. Over $35 million in protocol fees have been allocated for the automatic buyback of $RAY tokens since January 1, 2024. Raydium has accounted for 30% to 50% of the cumulative spot market trading volume on Solana over the past year. Since its inception, Raydium has achieved nearly $270 billion in trading volume, with liquidity providers (LPs) earning over $630 million in trading fees.
Top Ledger
- Excluding trading bots, Raydium's swap routing program has performed exceptionally well, currently accounting for over 30% of all real trading flows, second only to Jupiter.
Dune - @ilemi
- Although one of the primary beneficiaries of the thriving meme token trading volume on Solana, only 11.4% of Raydium's total trading volume currently comes from meme tokens.
Top Ledger
Trading Highlights: Raydium benefits from a rich ecosystem of third-party applications and protocols that utilize its core liquidity pools and trading infrastructure. The most beneficial has been Pump.Fun, which will migrate its liquidity pool to Raydium after completing its initial bonding curve. Other teams leveraging Raydium's infrastructure include but are not limited to Dexscreen's MoonShot, Trojan, BananaGun, FluxBot, BonkBot, Photon, and BullX.
LFJ
Blue | Website
LFJ Reaches $130 Billion in Cumulative Trading Volume, Surpasses $5 Million in 2024 Earnings
- LFJ (formerly Trader Joe) is a blockchain token trading marketplace that launched in July 2021 and has since facilitated over $130 billion in cumulative trading volume. In 2024, LFJ added over $30 billion in trading volume, doubling last year's figure. This growth is primarily driven by increased trading activity on the Avalanche network, where LFJ holds a dominant position.
defillama
- LFJ allocates 5%-25% of trading fees to $JOE token stakers, distributing an average of $550,000 in stablecoins per month in 2024, a 109% increase from the previous year. With 80% of its revenue coming from Avalanche, the increased on-chain activity has significantly benefited JOE stakers.
Token Terminal
- The $JOE token has reached its 500 million supply cap, with a current circulating supply of around 380 million. Without a fixed reward program, JOE is rarely used as a liquidity mining incentive. To date, less than $100,000 has been distributed to yield farmers, while maintaining over $5 million in positive earnings.
Token Terminal
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
