Monthly decentralized exchange trading activity surpasses milestone of $463 billion
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December 2021 saw a resurgence in the cryptocurrency market, with increased trading volumes across various platforms. Banxa, a payment service provider in digital assets, recorded a total transaction volume (TTV) of approximately USD $131-133 million for that month, marking a 337% year-over-year increase.
In the realm of decentralized exchanges (DEX), Ethereum's on-chain transaction volumes peaked, reaching their highest monthly totals historically. While exact DEX volumes aren't isolated, Ethereum’s total on-chain activity was significant, driven by DeFi, smart contracts, and NFT activity. Popular DEXs like Uniswap and SushiSwap were likely among the leaders in DEX trading volume.
On the centralized exchanges (CEX) front, Binance emerged as the leading player globally, with substantially large trading volumes. Binance is widely recognized as a dominant CEX operator, though the search results don't specify exact volumes for December 2021. Coinbase also played a significant role in the general market.
The renewed activity in the crypto market is not a short-term phenomenon. It is approaching levels seen in 2021 and is not limited to decentralized and centralized exchanges, but also includes over-the-counter platforms, which reported increased trading volumes in December, approaching 2021 levels.
The correlation between increased DEX and CEX volumes suggests a broader revival of the crypto market, not just a surge on a few specific platforms. The increased activity is attributed to recent market volatility, growing trust in DeFi ecosystems, and improved liquidity and trading tools on centralized exchanges.
In December 2021, Pancake Swap had a trading volume of $96.4 billion on decentralized exchanges, while Raydium reported a trading volume of $58 billion. On the CEX side, Binance accounted for around $950 billion of the spot trading volume during the same period.
In summary, while direct data for exact DEX vs. CEX trading volumes in December 2021 was not available, the prominent entities and contextual insights from the period suggest that Binance was the largest known centralized exchange player, with Ethereum-based DEXs like Uniswap and SushiSwap likely leading the DEX trading volume. The increased activity in the crypto market is a broader trend, driven by factors such as market volatility, growing trust in DeFi ecosystems, and improved liquidity and trading tools on centralized exchanges.
References: 1. Banxa Press Release 2. CoinMarketCap 3. Ethereum Merkle 4. Decrypt
What was the transaction volume for Banxa, a payment service provider in digital assets, in December 2021? It was approximately USD $131-133 million, marking a significant increase from the previous year.
In terms of investing, it appears that Binance, a leading centralized exchange (CEX), and Ethereum-based DEXs such as Uniswap and SushiSwap, likely had high trading volumes in December 2021, reflecting the broader resurgence in the cryptocurrency market.
