Cryptocurrency market activity continued to soar during the third quarter of this year. In fact, trading volumes rose by 88 percent in Q3 compared to the volumes in the second quarter. Binance still leads the back as the largest crypto exchange by trading volume as of September.
From Q2’s total volume of 175.7 billion, combined trading volumes of crypto exchanges rose by $155 billion to $330.6 billion from July to September based on data from Coingecko, according to Bitcoin.com. The 88 percent increase is attributed to the increasing popularity of decentralized finance (DeFi) and yield farming.
Coingecko’s report noted that trading volumes on decentralized exchanges (dexs) rose faster than those on centralized exchanges (cexs) in the third quarter. Coingecko wrote that “the monthly average dex trading volumes (of top ten dexs) grew by 197%, outperforming the average volumes of the top ten cexs, which went up 35%.”
However, dexs still has a lot of catching up to do in terms of the total amount. Even with its 197 percent increase, total dex volume for the period is just 6 percent of total cex trading volume for Q3.
After August, September is also the second-highest trading volume month in 2020, according to The Block. The total trading volume at various cryptocurrency exchanges reached $169 billion for the month of September.
Binance continues to lead the pack and is the largest exchange by trading volume last month. Transactions coursed through the platform reached $113 billion, which is around 66.8 percent of the total.
Coinbase is the second-largest exchange by trading volume with an 8 percent market share. LMAX Digital occupies the third spot for September with its 5.7 percent market share.
Meanwhile, Coingecko’s report also highlighted the rivalry between Sushiswap and Uniswap. “Unlike Uniswap which shares 0.3% of trading fees to liquidity providers, Sushiswap shares 0.25% to liquidity providers with the remaining 0.05% being converted to SUSHI and distributed to SUSHI holders,” Coingecko wrote. “Mining returns of over 2,000% drew in over $1.4 billion to Sushiswap at its peak.”