Decentralized Exchange Volume on Binance’s BNB Chain Hits Highest in a Year

Share this article:

Weekly decentralized exchange (DEX) trading volume on Binance’s BNB Chain has reached its highest level in a year, according to data from DefiLlama.

The week commencing May 7 saw DEX volume on BNB reach $5.11 billion, a level not seen since early May 2022, though volume did rise to just above $5 billion in the week following crypto exchange FTX’s November collapse.

This comes as DEXs witness an uptick in popularity, perhaps as a result of U.S. regulators clamping down on centralized exchanges. In April, DEX Uniswap topped centralized exchange Coinbase in trading volume for the fourth consecutive month.

There are a few reasons behind the yearly high. Lower fees on the BNB Chain might mean users are more likely to trade there, said Katie Talati, head of research at Arca, trying to explain the surge in volume. Another reason, she suggested, could be due to Binance’s popularity in the world of centralized exchanges. “It makes sense that users get routed to BNB Chain after using Binance,” she said.

“The opportunity to list on Binance and marketing support from the Binance ecosystem explains this,” said Charles Storry, head of growth at crypto index platform Phuture, echoing Talati’s comments. “Projects that gain traction get a Binance listing, an unspoken benefit but often happens,” he added. “We’re seeing a ton of projects look to leverage the Binance relationship.”

There’s also Uniswap – the largest decentralized exchange by volume – which in March, expanded to the BNB Chain.

“Uniswap being deployed onto BNB Chain a few months ago alongside Binance being the largest crypto exchange has brought more trading volume to the chain,” said Talati.

BNB Chain was launched by crypto exchange Binance (previously Binance Smart Chain) and is now a community-driven decentralized ecosystem, according to Binance’s website.

Credit: Source link

Share this article:

Leave a Reply

Your email address will not be published. Required fields are marked *