Trading volumes on Ethereum decentralized exchanges have been rising even as cryptocurrency prices have fallen.
Ethereum DEX sees strong activity
according to Davey’s CallEthereum (ETH) trading volume increased by 18% to $9.88 billion, while trading volume on other chains declined. Trading volume on the Solana (SOL) exchange fell by 8%, while trading volume on Base, BNB Smart Chain, Arbitrum, and Polygon fell by 4%, 14%, and 10%, respectively.
The worst performing chain was Tron (TRX) which saw its volume drop by 52% to over $642 million. This drop came as the popularity of the recently launched SunPump meme coins declined. According to CoinGecko, most SunPump tokens like Sundog, Tron Bull, and Muncat have retreated from their all-time highs.
Most DEXs on the Ethereum network saw a significant increase in volume. Uniswap’s volume surged 14.2% to $5.7 billion after the company reached a settlement with the Commodity Futures Trading Commission over its margin products. It agreed to pay a $175,000 fine and stop offering these solutions in the United States.
Curve Finance volume jump Balancer, Hashflow, and Pendle are up 68% to over $1.48 billion, while Balancer, Hashflow, and Pendle are up 68%, 196%, and 85%, respectively.
Bitcoin and most altcoins have fallen in value.
The volume came in a tough week for the crypto industry, with most assets falling. Bitcoin fell to $52,550, its lowest since Aug. 5 and 26% below its all-time high. Ethereum also fell below $2,200, down more than 44% from its high this year. The total market cap of all cryptocurrencies fell below $2 trillion for the first time in months.
There is a risk of continued selling as fear takes hold in the market with the cryptocurrency Fear and Greed Index falling into the fear zone at 34. Cryptocurrencies tend to see more weakness when investors are fearful.
DEX and CEX also see weak volume during periods when cryptocurrencies are declining. According to Davey’s CallTrading volume on Ethereum DEXs fell to $49.5 billion in August from a high of $69 billion in March as most coins gained.
The same thing happened across other DEX platforms where volume dropped from over $257 billion in March to $240 billion in August.
Looking ahead, cryptocurrencies could benefit from the Federal Reserve’s anticipated start to cutting interest rates. Data released Friday showed the unemployment rate fell slightly in August to 4.2% while the economy added 142,000 jobs. Risk assets tend to recover when the Fed cuts rates.
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