Uniswap and Raydium, two leading decentralized exchanges (DEXs), have seen a significant inflow of new users in July.
This trend is driven by increased trading activity in decentralized exchanges, fueled by automated bots and human orders chasing the latest meme tokens. Funds have flowed into top Ethereum and Solana DEXs as the market recovers, particularly Uniswap and Raydium.
Uniswap and Raydium see user growth
Uniswap and Raydium are notable for attracting new users, while other decentralized platforms mainly rely on returning users. Although all DeFi protocols have shown increased activity, Uniswap, and Raydium have experienced the largest influx of first-time users.
Uniswap remains stable with $4.64 billion in value locked across Ethereum and smaller pools from over 10 other blockchains. Raydium, focusing solely on Solana, has $1.22 billion in value locked, benefiting from Solana’s price surge in July.
Raydium’s success is closely tied to Solana’s performance, with SOL reaching $194. This growth has brought 8.4 million active users to Raydium in the past 30 days, with over 600,000 daily active users.
Despite its high turnover, Raydium ranks 127th among DeFi apps. Raydium and Uniswap generate substantial trading fees, each bringing in approximately $1.7 million daily, surpassing even TRON. Solana-based protocols like JitoSOL and Pump. Fun has also reported impressive daily fees of $2.29 million and $2.3 million, respectively.
Dominance in the DEX market
Uniswap and Raydium have overtaken smaller DEXs, becoming the go-to platforms for creating and rapidly trading new tokens. Although they lag behind staking protocols and liquidity pools in value-locked, they compensate with high activity levels. Their ease of use has made them particularly successful in attracting new retail users.
Uniswap recently reported $342.6 billion in lifetime trades, while Raydium’s practical applications have proven more significant than blockchain promises, generating competitive fees even with the Solana main net. Raydium has occasionally surpassed Ethereum in terms of performance during particularly successful weeks. It remains more selective than Pump. Fun and is the preferred DEX for new tokens looking to build liquidity.Â
DEX trading trends
DEX trading has surged since April, with Q2 witnessing the rise of new meme tokens. While centralized markets remain dominant, DEXs now account for 14.2% of their trading volumes, the highest ratio since March. The goal is to return to the 2021 bull market peak, where DEX volumes exceeded 28% of centralized exchange activity. DEXs provide access to new asset types and offer faster listings, remaining fully on-chain and maintaining a better track record of available tokens.
The recent shift to Solana-based token trading, due to lower fees and high-profile meme launches, has also contributed to DEX activity. Despite the 2023 market stagnation reducing DEX trading share, leading apps have enhanced user experience and added tools for easy token launches. The increased bullish sentiment in 2024 has further driven activity to DEXs.
The influence of DEXs is growing, with expectations to carry up to 25% of trading activity. DEXs play a significant role in token trading, as centralized exchanges mainly focus on larger assets. Some CEX-listed tokens face skepticism over potential insider trading. The ongoing expansion cycle highlights the growing importance of DEXs in the cryptocurrency market, offering new opportunities and a diverse range of assets for traders.