Cryptocurrencies have seen a very productive 2021 … at least until last week. China’s decision to ban Bitcoin and the refusal of Tesla, Elon Musk’s electric car maker to accept cryptocurrencies as payment, have crashed the market. In this way, all crypto currencies fell into the abyss of the red, with losses of up to 70% of their value. But all is not lost when the share price falls, and not everyone has thrown their heads in their hands.
While traditional exchanges collapsed, decentralized exchanges had the best month of their existence thanks to the crypto crash
Even if this debacle cannot be called a good thing for the crypto sector, there were clear winners during the price crash. This is the case with decentralized exchanges (which work directly on the blockchain and do not require registrations or intermediaries), whose operations have increased incredibly during the drop in prices.
When prices plummeted, large decentralized exchanges such as Uniswap or Sushiswap reached a record market volume of $ 11.7 billion. Not only that, the number of monthly unique users on these platforms also reached a new high of one million.
The exchange with the most visitors was Uniswap, which we talked to you about in this video, with 80% of all operations that resulted in a total value of $ 5,700 million. It is noteworthy that these exchanges base their DeFi (decentralized finance) technology on the Ethereum network, a currency that lost 70% of its value as it fell from its high of $ 4,357 to $ 1,853.
And while these exchanges received hundreds of thousands of visitors, many of the centralized crypto trading platforms collapsed in the face of the avalanche of users terrified by falling prices. This is without a doubt has become a baptism of fire for the decentralized exchange and DeFi in general, so it is better to closely follow their journey.