Investors Shift Focus to Alternative Solutions as Ethereum DEX Volumes Decline

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The trading volume on decentralized exchanges (DEX) based on Ethereum has significantly declined in recent months. In December 2024, monthly trading volume reached a peak of $112 billion, but by March, this figure dropped to $57 billion. During the same timeframe, the number of daily active wallet addresses plummeted from 95,000 to 40,000, marking the lowest level in one year. This trend indicates a waning interest in the Ethereum ecosystem and a shift towards more cost-effective solutions.

Uniswap Leads, While SushiSwap Lags Behind

In the Ethereum-based DEX ecosystem, Uniswap continues to maintain a clear lead. Despite experiencing significant drops in daily user numbers, Uniswap remains far more favored compared to other DEXs. Competitors like SushiSwap are currently limited to around 2,000 active wallet addresses daily.

The contraction in DEX activity reflects a broader shift in user behavior, moving away from speculative positions toward more cautious approaches. The decline in trading volume on DEXs might also indicate that market participants are opting for smaller transaction sizes. Nevertheless, DEXs still account for approximately 13% of the total spot market volume, supporting the market. This percentage represents a favorable long-term trend.

Interest Grows in Layer-2 and Alternative Networks

However, the decrease in Ethereum-based DEXs does not imply that investors are abandoning the decentralized trading concept altogether. Instead, the focus is shifting toward alternative solutions that offer cost advantages. Notably, Layer-2 solutions like Base are achieving significant trading volumes, while the Solana network emerges as a strong alternative trading environment.

Moreover, DEX aggregators like Bebop and CoWSwap stand out by optimizing trading routes, reducing slippage, and enhancing user experience. The current landscape indicates ongoing efforts to bridge the gap between decentralized and centralized exchanges. While centralized exchanges still lead in liquidity, transaction speed, and cost, innovations on the DEX side continue to progress without pause.

In the cryptocurrency world, investors are now closely engaging not only with the most recognized networks but also with alternative and more cost-effective solutions. The decline in the Ethereum network is considered one of the most visible indicators of this transition.

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