According to CryptoRank, decentralized exchange (DEX) trading activity saw a significant decline of 33.6% in Q3 2023 compared to the previous quarter. The total trading volume on DEXs dropped to $133.3B in Q3, marking a notable decrease. CoinGecko’s industry report revealed that the combined spot trading volume on the top 10 DEXs amounted to $155 billion in Q2 2023, experiencing a decrease of over 30% compared to Q1.
Among the top 10 DEXs, only Maverick Protocol showed growth in trading volume, while all others experienced a decrease. SushiSwap had the most substantial decline, with an 83.3% drop in trading volume during the quarter. In September, DEX trading volume reached $44.28 billion, as shown in DefiLlama’s data.
Chainalysis released its 2023 Global Crypto Adoption Index, which highlighted the Central & Southern Asia and Oceania (CSAO) region as the leader in grassroots crypto adoption. However, overall global adoption seems to be declining, as indicated by the downward trend graph since late 2022.
Despite the decrease in volumes, Uniswap remains the dominant DEX, accounting for over 38% of daily volume, surpassing its closest competitor, PancakeSwap, by threefold.
Various factors contribute to this decline, including ongoing regulatory pressures, market conditions, and security concerns. Recently, SEC Chair Gary Gensler emphasized the need for strict regulation in the crypto industry, emphasizing compliance with federal securities laws as he remains committed to regulating cryptocurrencies and related entities.