The trading activity on decentralized exchanges (DEX) during the third quarter of 2023 is down 33.6% in Q3 2023, as per analytics platform CryptoRank. During the third quarter of 2023 (Q3), the total trading volume on decentralized exchanges decreased significantly compared to the previous quarter, Q2 2023.
Decentralised exchange trading volume in Q3 was $133.3B – a decrease of 33.6% compared to Q2. The leading cryptocurrency data aggregator, CoinGecko, released its industry report, revealing that the combined spot trading volume on the top 10 decentralized exchanges (DEX) amounted to $155 billion in the second quarter of 2023. This marked a significant decrease of more than 30% compared to the previous quarter, Q1.
As per CryptoRank, Maverick Protocol became the only DEX to show trading volume growth among the top 10 market leaders. All other exchanges in the top 10 had a decrease in trading volume during this period.
While SushiSwap had the most significant decline in trading volume dynamics among the top 10 decentralized exchanges. Its trading volume decreased by 83.3% over the course of the quarter, indicating a substantial loss in market activity.
In September, the trading volume on decentralized exchanges (DEXs) dropped to $44.28 billion, as illustrated in the image based on data from DefiLlama.
Chainalysis released its 2023 Global Crypto Adoption Index, analyzing the grassroots adoption of cryptocurrency worldwide. According to it, the Central & Southern Asia and Oceania (CSAO) region leads the index, with six of the top ten countries belonging to this region.
The overall trend indicates a decline in grassroots crypto adoption globally. The trend graph below displayed this decline, with a notable recovery since late 2022 but still below all-time highs.
Despite falling volumes, Uniswap remains the dominant DEX, accounting for over 38% of daily volume. It surpassed its closest competitor, PancakeSwap, by threefold.
Ongoing regulatory pressures, market conditions, and security concerns have contributed to this decline. Recently, SEC Chair Gary Gensler advocated for strict regulation in the crypto industry, stressing compliance with federal securities laws as he remains steadfast in his commitment to regulating cryptocurrencies and related entities.
