As the conventional retail traders are showing frustration with the fiasco of GameStop created by Robinhood, DEX has recently successfully managed to hit an all-time high in their trading volume on a monthly basis.
The entire craze over AMC, GameStop, and several ‘meme stock’ has been making Robinhood and other stockbrokers suspend or restrict their trading for many thousand users. On the other hand, decentralized exchanges including Uniswap witnessed the craze over their own platform. They see no option of interference for their developers or others.
Sudden Soaring Trade For DEX
DEX has just closed the largest month that they ever had by processing over $63 billion as their trading volume within the past 30 days. This has been reported by Dune Analytics. This trading volume of January is more than 50% of the entire volume throughout the year of 2020.
This is a sign of their continued and rapid growth experienced by the cryptocurrency market. This also indicates the positive improvement of decentralized finance as the flaws in their structure of conventional stock trading are now starting to show.
DEX is usually built for conducting in blockchains including Ethereum through smart contracts that will automatically exchange between cryptocurrencies. As a result, the decentralized format of exchanges indicates an absence of centralized authority as a connecting order for the trade to another instead of using liquidity pools offered by users of protocol to exchange directly between the digital assets.
In addition, the lack of decentralized authority means decentralized exchange trades cannot be suspended or censored. This is not like the brokers like Robinhood who can change the rules of trading.
DEX is a part of DeFi which is a bigger industry and intends to replace the services and products given by the conventional financial industry.