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0x trading volume increased by 170% YoY

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DappRadar

Year on year trading volume up by 170%, traders count up 19%.

As already stated in the recent DappRadar DEX’s trading volume report, Decentralized exchanges (DEX) are becoming more and more important to the decentralized world as they represent an important component within Ethereum’s DeFi ecosystem.

One such DEX showing an impressive performance is 0x. 0x is a protocol built on Ethereum that entered the space in July 2019. Since then they have created a platform where developers can join the 0x protocol API.

0x is going to complete a full year in operation in the upcoming month and it has made a clear and positive mark on the DEX ecosystem by showing tremendous year-on-year growth. 

Key takeaways

  • YoY trading volume increased by 170% and traders count by 19%. 
  • The top 5 trading pairs on 0x hold 85% of the total trading volume on 0x to-date. 
  • Trading volumes for imBTC and USDT in June 2020 are at least twice as high as when compared to January 2020.
  • 0x’s token ZRX holds 3rd position in the overall DeFi token space by market capitalization.

Trading volume has increased by 170% Year-on-Year

0x network suggests easy integration with the 0x API that aggregates liquidity from 0X mesh, Kyber, Uniswap, and more. Enabling users to swap tokens at the best price. So, it is not a surprise we see a big surge within trading over the last 12 months.

Since the time the 0x protocol entered the market, we have observed growth in trading volume year-on-year of 170%, and on average, the trader count has increased by 19%.

0x trading pairs by volume

The trading volume increases are mainly driven by the traded pairs; WETH/USDT, WETH/USDC, WETH/DAI, imBTC/USDT, and USDC/DAI. These pairs contributed 85% of the trading volume in 2020.

WETH

WETH is referred to as Wrapped Ethereum, this is a version of the Ethereum ERC-20 token created by sending Ethereum to a smart contract where ETH is on hold, and in return receive the WETH at a 1:1 ratio.

Before being utilized within trading deals, WETH was introduced as an ERC-20 token in order to trade ETH directly with other alt tokens such as Augur’s REP Token, or Bancor’s BNT Token.

The most popular pairs WETH/USDT, WETH/USDC, and WETH/DAI. As of today, hold the majority of the market share with a total volume of 78% in the last 6 months. Growing by 224% when compared to 2019.

WETH/USDT Pair

Tether (USDT) is a digital currency with a value meant to mirror that of the U.S. dollar. Launched in 2014, the idea behind Tether was to create a stable cryptocurrency that can be used like digital dollars, or “stablecoins.” Tethers are anchored, or “tethered,” to the price of the U.S. dollar.

USDT has been going from strength to strength since its addition as collateral on MakerDAO. Currently standing in number 1 position on 0x it is very well traded with WETH. Currently, holding 53% of trading volume from the total volume in June 2020. Growing 1331% in 2020 when compared to 2019. 

WETH/USDC Pair

Similar to Tether (USDT), the USDC stable coin is also growing day by day since it was declared as MakerDAO collateral in Mid March 2020. The stable coin stands 2nd and is traded mostly with WETH in 0x. Contributing 10% of the total trading volume in June 2020. Growing 168% in 2020 when compared to 2019.

WETH/DAI Pair

DAI is a decentralized cryptocurrency stabilized against the value of the US dollar. Created via the Makers (MKR) DAI Stablecoin System, it uses margin trading to respond to changing market conditions and preserve its value against the major world currencies.

0x added DAI trading to their protocol in November 2019 and from then the journey of DAI has been interesting. In just 8 months it has made more than 91M USD and stands 3rd in the trading pairs of 0x making a 10% contribution to the total trading volume. Growing by 244% in 2020 when compared to 2019.

imBTC

imBTC is a Tokenlon project. Introduced to the Ethereum platform to create accessibility to Bitcoin as an ERC-20 token that represents the 1:1 value to Bitcoin. Holders can exchange, mint receive, and redeem the income on imBTC from the Tokenlon platform

On 0x protocol, it is traded with USDT i.e, imBTC/USDT only. It currently holds only a 3% market share of the total volume in 2020. However, this tokenized BTC has grown tremendously in 2020 by 1655% when compared to 2019.

The token of 0x: ZRX 

0x has its own ERC-20 token which is known as ZRX. Usually, ZRX tokens are used to update the mechanism of the 0x protocol that allows the improvement and replacement of underlying smart contracts.

Besides this, ZRX can also be used when exchanging tokens. ZRX value has increased by 28% today when compared to its initial value.

As per data from Defi Market Cap, 0x’s ZRX token holds the 3rd position in the market of DeFi tokens with a market cap of $343,806,320.

Recently MKR holders voted on whether to add KNC and ZRX as new collateral types and it will be interesting to see how that shapes the price of the tokens.

Conclusions

The 0x protocol is one of the most used DEXs in the decentralized and shows a lot of potential promise. This can be seen with the tremendous growth in trading volume of 170% year-on-year and 19% in traders count.

Trading volume and traders are not the only metrics that indicate the continued growth of the protocol. The 0x token ZRX holds 3rd place in the DeFi ecosystem by market cap. Furthermore, the token grew 28% in value when compared to its initial value.

We will continue watching this space. Make sure you bookmark DappRadar and sign up to our newsletter below to get updates direct to your inbox.

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