Trading volumes on Ethereum blockchain-based decentralized trading platforms have plummeted this month.

Trading volume has fallen by 42% in the past 30 days, according to data provided by . Sand dune analytics..

Weekly trading on decentralized trading platforms peaked at just over $8 billion on August 31, and later reached a monthly high of $6 billion on September 14.

But weekly trading volumes have since fallen to just under $3 billion, as of October 12, according to the aforementioned source.

Decentralized exchanges are platforms that provide the service of trading cryptocurrency while keeping the private keys of the cryptocurrency in the hands of the users.

Read:How will Bitcoin (BTC) go in the short term before going up?

One of the most prominent decentralized trading platforms is Uniswap.

DEX has boomed amid the decentralized finance boom this year, which began around the end of June, as people invested billions of dollars in DeFi lending protocols to take advantage of the high incentives offered.

But the prosperity was not to last and everyone knows it.

To maintain growth and prosperity, decentralized finance protocols have provided more and more incentives to entice people to use their platforms and protocols.

However, despite the increase in the closed value of funds in the DeFi protocols, the trading volume decreased, which is clearly visible when looking at the decentralized trading platform Uniswap, which recorded on September 1 a trading volume of 1 billion dollars, significantly declining and reaching the level of 234 million dollars yesterday. .

Johnson Xu, director of research at Huobi DeFi Labs, told to source including:

I think the volume of DEX trading is closely related to the DeFi protocol market in general.

Shaw added:

Various factors come into play, but one of the main reasons is that people aren’t earning the same amount of returns right now, just because these crazy returns aren’t sustainable, and often come with big risks.

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Now, things have calmed down and the market is now back to a more reasonable level, hence the lower volume of DEX trading.

When the market calms down a bit, these returns will be adjusted accordingly to reflect market consolidation in a healthy way.

Although trading volumes have decreased, Uniswap liquidity has increased (liquidity on decentralized exchanges is the amount of money that users make available on the platform to facilitate currency swaps and earn fees for it).

Uniswap’s liquidity rose from about $1 billion in mid-September to about $3 billion yesterday.

This can be attributed to the recent cryptocurrency price boom, but the volumes of Bitcoin, Ethereum and DAI locked into the platform have increased, according to data from DeFi Pulse.

As we told at the beginning of the article, the amount of money invested in DeFi contracts (the locked value in decentralized finance contracts) is on the rise, reaching about $12.3 billion, which is a new record, according to DeFi Pulse.

Read:The Qtum crypto project enters the DeFi arena…details here

Analysts attribute that the TVL closed value increase is primarily due to the increase and rise in the value of cryptocurrencies, led by the increase in the value of the price of Bitcoin and Ethereum.

Tell Shaw:

DeFi participants are still earning reasonable and higher returns than the traditional market, with many yield farming projects.

Read also:

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