DEX tokens soar as trust in centralized exchanges is eroding ๐จ This article is 3 years old...
DEX tokens soar as trust in centralized exchanges is eroding
2 min read
Updated: Mar. 5, 2022 at 2:22 am UTC
While the past week has been somewhat tumultuous, to put it mildly, for both crypto and stock markets, it looks like digital tokens related to decentralized exchanges (DEXs) are actually having a great time.
The sector is in the green across the board as most DEX tokens are up anywhere between 1.3% and 317% over the last seven days, according to CryptoSlateโs data.
Over the past week, DEX coins have been performing significantly better than CEX coins. Over the past 7 days:
CEX Coins ? + 7.56%
DEX Coins ? + 43.88%Dive deeper into each sector on CryptoSlate ?
CEX Coins โก๏ธ https://t.co/W7qSIer6Zn
DEX Coins โก๏ธ https://t.co/OPJuThMeA9 pic.twitter.com/wUGZgE3Xf6— CryptoSlate (@CryptoSlate) January 31, 2021
DEXs are crypto trading platforms that enable direct peer-to-peer transactions between traders. This means that all trades are executed based on their hardcoded algorithms without any intermediaries. This also means that DEXs canโt restrict trading whenever they feel inclined to do soโunlike some of their centralized counterparts (CEXs) that are owned and operated by certain entities.
While the DEX token sectorโs dominance index remains relatively low at 1.35% by its market capitalization, many DEX-related assets saw steady growth over the past week. For example, UNI, the native governance token of widely popular decentralized finance (DeFi) platform Uniswap, is currently trading at around $18.83, up 20.3% on the day and 79.7% over the last seven days.
It is followed by Synthetix Network Token (SNX), SushiSwap (SUSHI), and Loopring (LRC), which saw their prices increase by 16.22%, 38.15%, and 24.15% over the week, respectively.
Overall, only four out of the 30 DEX tokens tracked by CryptoSlateโKyber Network (KNC), Hegic (HEGIC), Polkastarter (POLS), and MCDEX (MBC)โended up in the red over the 7-day period.
CEXs left in the dust
This growth is especially apparent in comparison to the centralized exchangesโ metrics. Over the last week, not that many CEX tokens have shown notable results, although there were some exceptions such as Catex Token (CATT, +1,122%), Tidex Token (TDX, +246%), and Voyager Token (VGX, +225%).
In terms of the overall sector change in seven days, DEXs lead with +43.88% while CEXs average price increase was limited to +7.56%.
Perhaps the general publicโs attention has begun to turn towards decentralized trading platforms after witnessing the events that unfolded last week. When Reddit group WallStreetBets arguably scored a big win against Wall Street sharksโand on their own fieldโRobinhood has restricted the trading of GameStopโs stock (GME).
Notably, the exchange has only turned off retail tradersโ ability to buy GME, impeding the stockโs price growthโat least on Robinhoodโs platform. At the time, many users and experts argued that Robinhoodโs decision couldโve easily been interpreted as an attempt to create a safety net for hedge fundsโ short positions on GameStopโand put โthe little guyโ at a disadvantage.
As CryptoSlate reported recently, Robinhoodโs actions could also have helped DeFi and cryptocurrencies to get more recognition.
Now would be a great time to explore a decentralized @RobinhoodApp ?
Oh wait, it already exists ?
Trade what you want, when you want. pic.twitter.com/Cd9e63GVOV
— Zerion ? (@zerion_io) January 28, 2021
Or could this be yet another echo of the โElon Musk effectโ in action? After all, Tesla CEO did hit that โLikeโ button on a tweet about a decentralized analogue of Robinhood. Is there anything he canโt pump?
Mentioned in this article
Author 
Liam Frost
Liam Frost is a freelance journalist and editor with over 15 years of experience working for various media outlets across the world.
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Uniswap
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Since its inception, the Uniswap Protocol (“Uniswap”) has served as a trustless and highly decentralized financial infrastructure.
1inch
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1inch is a decentralized exchange (DEX) aggregator that sources liquidity from various exchanges and is capable of splitting a single trade transaction across multiple DEXes.
Synthetix
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Synthetix, formerly Havven, is a cryptoasset-backed network that enables the creation of on-chain synthetic assets.
SushiSwap
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SushiSwap is an automated market-making (AMM) decentralized exchange (DEX) currently on the Ethereum blockchain.
Loopring
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Loopring is a decentralized automated execution system that trades across the crypto-token exchanges, shielding users from counterparty risk and reduce the cost of trading..
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