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Perhaps the current volume is what it's supposed to? It's a fact that the DeFi hype boosted the volume in Uniswap.

Developers didn't waste much time in riding the hype and created all these high yield tokens but lacking fundamentals. When speculators started getting rug pulled, they left.

I do like the idea behind Uniswap. The liquidity provider feature is good and it provides investors a chance to earn decently but these new and hyped tokens made it look bad.

This is what also I think. It was totally hype before, I think a lot of people got FOMOd and a lot of people want to aboard that's why we saw a huge volume like that in just a short period of time and the result is this now.
I also agree with Ratimov that it may still fall for more.
But what happened is really helpful for everybody, we already know what are the effects of Decentralized Exchanges to the market.

1- Dexes are mostly for ETH token investors.
2- Cexes are for everyone else (investors/ day traders/ short term traders/long term traders/leverage traders/miners in need of hedge/gamblers/scalpers/market makers/ people afraid of themselves-being responsible for their own coins).

With Defi hype there were a lot of ETH toknes investors (most of them do -90% on wallet till now thanks to scams/pump and dumps) and in short term proportion between P1 and P2 changed. Now its back where it was not exactly because of not caring about technology. Its because of the end of DEFI bubble (low volume made by ETH token invesorts) ... I do care and appreciate how dexes evaluated thanks to defi hype (I remember when I was using etherdelta ... compare it uniswap - DAMN. Do you guys know that you can dump in 1 order ~$3 mln worth of ETH to USDT with only 1% slippage ... on DEX ... insane). But I'm 90% CEX guy mostly because i'm not middle/long term eth tokens investor.

In the last 30 days Bitcoin dominance had some increase in percentage which by itself shows more interest in buying bitcoin and while btc is going up fast which happened recently it's normal to see a drop in DEXs volume since not that many people will risk buying very low cap tokens while bitcoin is going up knowing that it can cause very big price drops for those tokens, also don't forget the fact that DeFi is still in hype season and when the hype is over it's normal to see even more drop in decentralized exchanges trading volume and that wouldn't necessarily mean DeFi doesn't have a feature.

It's kinda weird since I read another thread saying that DEX is growing in volume compared to CEX in Q3 according to some reports by Coingecko (if my memory serves me right). I guess it depends on how you look at the data, there will always be a twist on the conclusion even if we're looking at the same thing. Maybe things will change when the atomic swap becomes a thing and is reliable enough to replace P2P trading through escrow services.

Yeah, it's kinda weird.  I looked into the CoinmarketCap ranking exchanges, it seems CEXs was down than the DEXs.

Just try to look at here in Coinmarketcap CEXs ranking (https://coinmarketcap.com/rankings/exchanges/) and the CoinmarketCap DEXs ranking (https://coinmarketcap.com/rankings/exchanges/dex/).  You can see there the increase of its volume and it seems DEXs was a healthy volume like Uniswap(v2) which is leading DEX.  I believed that this result was because of the Defi hype projects, we know that it is also the possible reason for Bitcoin price surged in the market this year.

There is the need for DEX, Uniswap still is one of the best place to trade if you like DEX to keep your privacy and its volume are bigger than any other DEX. Despite all these, its not going to be make BTC traders go there even with wBTC, they want the real one.

Dydx are good for ETH trader but they should just pair ETH with USDT to make it easy for not DAI friendly users.

I think the problem with DEXes is the lack of marketing investments and support for users. I mean let's think about it.. Why Binance got to be the biggest altcoin exchange? - Because of the marketing campaigns, website design, offers, partnerships, etc. A decentralized exchange does not have the funds or the management in place to undertake all this.

Also with CEX you have constant development like mobiles apps, new features, integrations with other services, etc. Maybe a DAO government of a DEX would be the best.

This is just natural in my opinion, there are some people that will be moved by ideology, as an example some of the first people adopting bitcoin back in the day did not do it because they wanted to become rich, even if many did so, they adopted bitcoin because they believed in the ideas behind it but since then the market is mostly composed of those looking for their own selfish interests, which is not bad at all but it is not the same as it was.

DEXs are the same, there are those that will only use DEXs on principle but the rest will only do so when they see something to gain and since that is not the case anymore I think we will see a drop on the volume on those exchanges in the short term, but I think that slowly but surely as regulations increase all over the world the volume of DEXs will grow steadily over the years as people become disgusted with how intrusive CEXs will become.

If you run a moving average of DEX volume throughout Q3, or draw a linear regression for the period, it was clearly trending upwards. And rather strongly too. It's just that activity peaked towards the end of Q3 and then dropped off really abruptly.

Old timers expected this. I certainly did. Volume follows hype. When the Defi hype died, so did the volume.

Most of the volume of DEX came from DEFI projects and now the hype is nearing its end so the value also started to fall so we can't consider this as real growth of DEXs. Another reason is existence of DEXs increases the transaction fee to extreme level which makes the trader to be in loss/no profits even after their sold their assets for better price than its cost.

Back to market enthusiasts. If people are comfortable with Decentralization, then DEX has been more developed and always superior in volume.

In fact, CEX always offers great security, guarantees and bonuses that DEX will not offer. Nor will defi projects argue that CEX is more promising and that in the end all defi tokens will be listed on CEX.

I kinda like using Dexes. You dont need to move funds and yes the no kyc is really good. It just that the transaction fees and slippage are not user friendly. We need a dex that can actually compete with Cex when it comes to features, but it might be a hard one to do so. Hopefully in the near future they will compete toe to toe but not now, because looking at the chart until now the dexes volume is still miles away from their cex counterpart.

The privacy aspect of DEXes is really enticing to me, no need to give out your personal information such as KYC to a 3rd party you don't necessarily trust with that information, but unfortunately some Dexes are going in the way of KYC such as Komodo with their Atomic Dex: https://komodoplatform.com/community-update-on-atomicdex-kyc-aml/

Since there are no truly decentralized DEXs (only non-custodial), any DEX that gets big enough will eventually add AML/KYC measures. That's the bottom line until decentralized servers, order matching engines, etc. are actually viable.

The good news is open protocols like Komodo's DEX can easily be forked so they can be used without the official version's KYC requirements. The bad news is we're stuck on this hamster wheel where DEXs have insufficient liquidity, and whenever one gets big enough, regulatory pressure forces them to add KYC. Then liquidity naturally wants to go elsewhere because, who wants to do KYC to use a DEX?

To be honest as a dex trader and token farmer I already boticed the significant drop. Ive started mid of the hype and somehow able to ripped some good profits but as I noticed the density of it now? Obviously it got change and decreased. Data can show it and its real.

Ive been thinking already to move back on trading on cex with major coins since got so fucked up with the shitcoins now. Not really toast that much but the effect of it slowing done can be felt already.

But only do it on Binance, as cex is also dangerous hub and hackable.

There are a few issues with DEX and probably why many people want to stick with a regular CEX.

One of the reason is the learning curve. I got many years of experience with Bitcoin and Ethereum but it still took a few hours of learning how to use it properly. So imagine how difficult it would be for a new retail traders to use right off the bat? Most likely they would give up and just trade stock market instead.

Another reason is the price of the transactions. They are cheaper now but when everybody was using DEX they became crazy expensive. I am talking about $50 per transaction. This is more expensive than most stock trading platforms from 2000. So the more people use it, great volume and liquidity however its expensive. So less people use it and there is less volume and liquidity. So its a catch 22 pretty much.

I could be wrong but to assess the trading activities of crypto market or of exchanges (centralized or decentralized, for your specific analysis) you should do it with 3 analyses at least:

• Trading volume in total number of cryptocurrency traded
• Trading volume in total amount of BTC traded
• Trading volume in total amount of USD or USDT traded

It can help you to have different measure algorithms and avoid impacts from pumps or dumps of altcoins or tokens (in BTC or USDT trading pairs). Less volume in BTC or in USDT does not mean less trading activities. Same amount of altcoins or tokens are traded at different periods with different price of those altcoins/ tokens in BTC or USDT pairs can cause less value in total traded in BTC or in USDT.

Combine 3 analyses and get a whole picture will be better, I believe.

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Maybe I have weird thoughts but I am open-minded and it is my own opinion.  :D

I think user interface and ease of trade are two reasons why Dex don't work. I doubt that even from this remaining volume majority of it might be merely fabricated using bots and algos. If you put a trade on any Dex you would simply see a bot putting orders ahead of you to manipulate prices and volume. Moreover the swiftness of a trade in Centralized exchanges is obviously another major reason for their success people really want quick trades. Even a 5 second lag in trading can be worth thousands of dollars. Dex obviously can't provide a faster experience due to obvious reasons. But I don't think Dex could anymore be looked as future of trading. The recent volume spikes too were merely because of that Defi hype and nothing else.

Hihi, this is gold!!!

Just a week ago we had a topic:
DEX increase volumes, CEX reduce (https://bitcointalk.org/index.php?topic=5283077.0)

And then out of the blue, the volume is dropping again and most likely will go back to pre defihype levels in a month and then be forgotten as the new thing pops up.
I don't know why anybody would be amazed by this, other than playing with shitty tokens you still need the link to other blockchains that matters, and you need real exchanges to cash out and use the earning. No shop is accepting those tokens, for 99% of the stuff out there you need fiat.

And when it comes to actually trading there, when a lot of those tokens have flopped and left their customers penniless, when there is no defined future in which these can really be usable at a macro scale worldwide, it will become clear that DEXs where just part of a failed dream that came too soon with a wrong base.


And should anyone be surprised by this?
I would be willing to bet that if we do a polygraph test more than 99% of the people using crypto will have to admit that the most important thing is profit and they don't care a bit about the rest, and it's pretty normal, decentralization is not buying you a new car, some fantasy token might.

Indeed, profit is what they after why they come and risk in the crypto world that even they don't have assurance but then, they are still willing to gamble here for they think about easy money, huge market gains. And that 1% left could be you (and me) and some of the common traders who think that DEXes has nearly become obsolete as CExes moving forward.

Well, I don't think also that people care much for anonymity that DEXes may have but instead, they are willing to lose it just for money. That is very influential...

Since the beginning times of DEX, I am the one who never felt any differences of DEX from conventional crypto exchanges. I mean I am using both in same manner and the risk of losing my capital is the same if I leave my capital in exchange addy itself (for instance trading). Like someone mentioned here, only P2P trading made myself also to feel and enjoy the benefits of decentralized way of trading.

DEXs may lose its glamour when smart contract things are getting outdated. Without dapps, we cannot be having those dex and I'm not seeing most smart contract coins will be sustaining along with bitcoin. Like ICO, IEO and recent defi, dapps may not sustain or at least how they did significant levels in trading volumes in the recent past.

Nobody "needs" dex's, they are totally useless in the sense that you do not need them to stay alive for example, they are not water and they are not bread, but that is not how you approach to any new invention. Everything that is created creates its own need as well, hence why I believe it is quite important that we give the space dex deserves to dex in order for it to prosper and be its own thing, however I believe it is not going to be anything substantial and won't grow to be too big.

I understand that it is hyped right now and people are using it and there is billions of dollars involved but that is something that won't be too long and until it is few months or even a year we won't know how long this will go on. At the end of the day only time will tell how much dex's are "needed" by the people that uses it.

Actually, as a bounty hunter I am always admire the dex since from the start. Almost all of my bounty payments were settled first in bounty which I exchanged them into bitcoin or ethereum. I really appreciate the existence of decentralised exchange specially that new tokens are listed there. It is useless to others because they want to have some security with regards to their capital or investment. But when you think that the token is capable of rising up, buying at dex is much better and you will gain more profits because price in dex are undervalued.

I think the same however I just hope this is not a change in the trend we are seeing of more people using DEXs, it will be a shame that after this is over people decide to abandon DEXs and go back to CEXs, I know that the volume there is many times larger than whatever you can find in a DEX but it is also true that CEXs are getting more and more intrusive by the day on the data they ask from their customers and this is an opportunity for DEXs.

After all if they are truly decentralized then they will never have to ask for this kind of information and people will begin to choose to go there not only by the hype but also by the distinct advantages they offer over CEXs.

theres always a demand for dexe's because they offer something that you cant find in the cex'es field but the trend of defi boosted the use of the dexe's , isnt that great ?

 i know that the boost was temporary and its expected that when the defi era were over the volume of the dex can also go normalise but thats fine atleast dex experience to be treated like a king again than having the same ol life it had over the past 3 years course . who knows ? maybe after the defi there will be another new trend that will come out and itl still be on the decentralized category  .

This isnt something new anymore and we had observed this since from the beginning of time where DEX do exist.There's really a time where everything hypes up which would result into those rise in charts and when
that hype dies then expect for people to go into those traditional ways on where they had been get used to which on CEX.We do love decentralization but these cant beat up on what CEX is been offering.
One of the main reasons on why people do still continue to go back with cex is that because of fiat/crypto transactions.Yes, there might be some liquidity on dex but those are just temporal or in a short span of time
and that happened when defi had really make out some buzz to the market which it did really result into some increase but now theyre plummeting again which it isnt that surprising.

I agree with you and also, data do not lie, and most importantly the fall in liquidity and trading volume should be a huge concern, and of course just like you rightly stated, it means people are moving back to centralized exchanges. But the question I asked myself is this, what made them go back to centralized exchanges after all the ride with decentralized exchanges? What I understood is this, Defi projects were the main reason liquidity and trading volumes grew in most DEXs, and we all knows that the DeFi hype is dropping at a faster rate showing that, as the hype drops so is the liquidity because people are no longer involved like they used to.
However, looking at the other angle, Dex is really needed because it is a bit secure than its counterpart, and bearing in mind the rate of hacks on Cexs is another factor to consider on why Dex is needed.

Let us hope that people at least still remember after all of this that DEXs still exist and decide to keep using them after the DeFi hype is over, even if I know that it is impossible to maintain the current volume and most likely it is going to decrease dramatically during the next year I hope at the end that the volume is many times higher than what we had before this bubble, because quite honestly I tried to use DEXs in the past and you could only trade minuscule amounts of money.

But I have my doubts this will happen as many traders do not care about ideology or anything and only care about making money and in that aspect CEXs are still a better option due to the high volume they manage.

The growth of DEX as the preferred choice among crypto traders and investors may be slow but it will happen fully sometimes in the future as more advanced features and protective measures are built into DEX. The issues of rug pu by scam developers, listing of fake tokens to scam investors, and the Ethereum network congestion are just some of the teething problems affecting Uniswap and the likes.

If we can have new DEX with innovative solutions that can complement Uniswap, we'll see more traction. But for now, the load is borne only by Uniswap and a few others, whereas we have tens of top centralized exchanges driving liquidity and volume. So statistically, the comparison isn't even.