The trading volume of DEX hit a record high in February, Kyber ushered in the second spring
Produced | Odaily (ID: o-daily)
Produced | Odaily (ID: o-daily)
In the past February, the monthly transaction volume of DEX (decentralized exchange) hit a record high.
According to Dune Analytics data, in February, DEX trading volume reached 372.2 million US dollars, a 62% increase from 292 million US dollars in January. Before that, the highest value of DEX trading volume was 358.5 million US dollars in July 2019.
From the perspective of transaction volume distribution, in the past 24 hours, Kyber accounted for 37.32%, Uniswap accounted for 28.48%, Oasis accounted for 27.05%, IDEX accounted for 4.87%, and AirSwap accounted for only 1.18%.
Since most DEXs are based on Ethereum, the reason why DEXs performed well in February is related to the strong rise in the price of ETH since February, and its robust resistance to falling during callbacks.
This has made the overall ecology of Ethereum better, and the entire DeFi market has also experienced significant growth. On February 15, the lock-up value of the DeFi market hit a record high, reaching a historical peak of 1.221 billion US dollars, and the trading activity of Dai, USDC and other assets rose.
In addition, DEX trading volume broke new highs in February, which may also be affected by the frequent "problems" of centralized exchanges and centralized assets.
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The ecology of Ethereum is prosperous, the price of ETH has increased by 73% compared with the beginning of the year, and the transaction volume of DEX is positively correlated with it
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Comparison of DEX trading volume in January and February, source of picture: First Class Cang Blockchain Research Institute
According to the data of the First-class warehouse blockchain research institute (the transaction volume is counted by smart contracts, if a transaction is completed on Kyber, and the liquidity comes from Uniswap or Oasis, then the transaction will be counted twice), the transaction volume of DEX in February ranked top The three are Uniswap, Oasis and Kyber in order. Compared with January, the trading volume has increased by 126.4%, 154.4% and 42.6% respectively.
Judging from the growth of the DEX market in February, the trading volume of most DEXs increased to varying degrees, and the trading volume of Bancor and Airswap in February was the same as that in January.
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DEX monthly trading volume and ETH price, source: Dune Analytics
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DEX trading volume and number of people, source: DEX Watch
In addition to the rise in ETH prices, the sudden increase in DEX trading volume also benefited from the increase in the number of DEX traders. From the above figure, we can see that since December last year, the number of DXE traders has begun to show a slow upward trend. There was a surge in early February, and the peak number of transactions was reached on February 12.
In addition, the favorable market has also promoted the short-term prosperity of the DeFi ecosystem, and the growth of DEX transaction volume is also inseparable from the prosperity of the entire DeFi ecosystem.
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Changes in DeFi lockup value, source: DeFi Pulse
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Uniswap ranks first, Kyber trading volume surges, tokens increase by 400% from the beginning of the year
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Changes in trading volume of major DEXs in the past two months, source: DAppTotal
Among them, it is worth noting that the transaction volume of Kyber has increased significantly in the last month, especially at the end of February, the momentum has become stronger, and the gap between Kyber and Tokenlon is gradually narrowing, and even surpassed the transaction volume of Tokenlon on February 29 (On February 29, Kyber traded a total of 9192 ETH, while Tokenlon only traded 1528 ETH).
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24h DEX trading volume changes, source: DAppTotal
As of press time, Kyber has surpassed Tokenlon and IDEX, ranking second only to Uniswap.
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Main DEX DAU changes in the past two months, source: DAppTotal
From the above figure, we can see that the DAU trend of major DEXs is converging, and Uniswap still maintains the highest daily activity, with the highest user activity, followed by Tokenlon and TokenTrove. In the first half of February, the DAU of mainstream DEXs reached its peak in nearly two months. During this time period, the price of ETH was in a steady upward cycle, and broke through a new high of 288 USDT this year around February 15.
In DEX token transactions, Dai and USDC are the top two in terms of transaction volume, both of which are accompanied by the growth of the DeFi market and the activity of lending agreements, which have increased significantly this year, with a 30-day month-on-month increase of 85% and 117%, respectively.
The transaction volume of KNC (Kyber) tokens has the highest increase, with a 30-day chain increase of 275%, and it has jumped to the third place in DEX transaction volume.
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Kyber's Value Capture: Token Model and Ecological Governance
Undoubtedly, Kyber's performance in the recent DEX market is the most outstanding. Let's briefly discuss the value factors that made Kyber's outstanding performance in February apart from the impact of the general environment (Odaily reminder: only for project analysis, does not constitute any investment advice).
Kyber can also be regarded as an old-fashioned project in the DeFi field. It was supported by V god when it first debuted. It started to have transaction volume in February 2018, and it has been two full years now.
However, with the rise of many DeFi projects, it once faded out of people's vision. It was tepid in 2018 and 2019. Since the second half of 2019, Kyber has begun to improve again. Through a series of technological innovations and cooperation, Kyber once again Attract people's attention.
Let's take a look below, in addition to the promotion of the good news of the launch of Coinbase Pro recently, what improvements and upgrades has Kyber made itself, so that it was able to glow with a "second spring" in February?
In addition to the good news of launching Coinbase Pro, the increase in Kyber’s trading volume is also related to its upgraded Token model. In addition to burning fees, Kyber has increased the reserve incentive mechanism, as well as Staking mortgages, and the implementation of the decentralized autonomous organization KyberDAO and other fundamentals.
Kyber intends to automatically collect fees on every transaction, burn them or use them for rewards and incentives, removing a major friction and pain point for reserves looking to integrate with Kyber.
Kyber's original mechanism is that 70% of the platform transaction fee (charged at 0.25%, slightly higher than that of ordinary exchanges) is used for destruction, and only this way is used to maintain the value of the currency.
Now it has changed to three. In addition to continuing to burn handling fees and increasing reserve incentives (rewarding merchants who provide liquidity for the platform), a Staking mortgage has also been added, which may also be the main factor stimulating the market in the near future.
A portion of the total fees Kyber now collects will be used to reward reserves, depending on the transaction volume they bring to the network. This type of incentive mechanism is called rebates in traditional finance and is a well-known and widely used mechanism to attract market makers. This will incentivize more Kyber reserve creation and market maker activity, resulting in a significant increase in liquidity and coverage.
Kyber will also launch KNC's decentralized autonomous organization, KyberDAO, also known as KNCDAO. Kyber DAO enables the community of KNC holders to decide how to use platform transaction revenue by voting on the ratio between burning, staking rewards and reserve library incentives, and a portion of transaction fees will also be returned to stakers in proportion .
According to the official statement, the function of KyberDAO is expected to be launched at the end of the first quarter or the beginning of the second quarter of this year, that is, around the end of March and the beginning of April. Investors participating in Kyber's ecological governance can focus on it at that time.
The Kyber team plans to implement the Katalyst protocol upgrade, encouraging key stakeholders (stakeholders) to participate in Kyber ecological governance. The upgrade of the Kyber protocol applies to 3 main groups of Kyber stakeholders: Reserve Managers who provide Kyber with liquidity, DApps that connect recipients to the Kyber Protocol, and KNC holders at the core of the Kyber Network.
An important improvement in the Katalystal upgrade will be the option to use some KNC tokens to earn money for users. The mechanism is called Google's staking mechanism, and it uses tokens to authenticate transactions. Additionally, this will also reduce the number of unallocated KNC tokens, maintaining KNC's deflationary nature, which will eventually help increase KNC's market cap.
Compared with other DEXs, Kyber's recent progress is indeed remarkable. In addition to the above-mentioned positive fundamentals, Kyber has also actively listed new coins recently, is user-oriented, improves the function of the portfolio panel, integrates new DApps, and encourages more DApp developers Building with Kyber...and so on.
In addition to Kyber, other DeFi projects are also improving their ecology and actively deploying. Last week, Compound released the news that it will soon launch COMP tokens for decentralized governance.
Although the detailed rules are not clear at present, it is certain that the market share of existing decentralized stablecoins is rising, and new assets are constantly being born. Although the DEX ecology is early, it also has visible development potential and is being gained. Approved by more users.
Odaily will also continue to pay attention to the latest developments in the DeFi ecosystem and DEX.
