Volume of trading on decentralised exchanges hit a record high for the third month in row during August.
The term “decentralised exchange” generally refers to distributed ledger protocols and applications that enable users to transact cryptocurrencies without the need for a trusted centralised entity to be an intermediary for the trade or a custodian for their cryptocurrencies, according to the Stanford Journal of Blockchain Law & Policy.
Dune Analytics revealed that trading volume surged 160% on a month-on- month basis, recording $11.6 billion in August, compared to $4.5 billion in July.
It attributed that hike to the intense enthusiasm for decentralised finance (DeFi) applications continuing to spread.
Previously, Coindesk stated that trading volume on the decentralised exchange Uniswap marked an increase of 283% in August. It recorded $6.7 billion, exceeding its July record less than two weeks into the month.
On Monday, Uniswap announced a 100% hike in trading volume in its platform, totaling 6,867. The platform has 6,020 assets available for trading.
According to the data, only two decentralised exchanges reported a decline in their trading volumes during August. These exchanges are Loopring and Oasis, which recorded a drop of 5% and 3%, respectively.
People’s demand for cryptocurrencies has risen in direct relation to the increase in inflation, which has hiked since the emergence of the Covid-19 pandemic.
Tether is the world’s most used decentralised currency
As the world’s most stable cryptocurrency, Tether is also the preferred currency for most cryptocurrency traders.
This comes at a time when trading in the Bitcoin currency during the same month exceeded $702 billion.