• bitcoinBitcoin$70,856.003.07%
  • ethereumEthereum$3,568.582.13%
  • elrond-erd-2MultiversX$61.161.09%

DEX Volumes Continue to Surge Despite Bitcoin and Altcoins Corrections

DeFi began 2021 by playing a role in starting the bull market cycle, making traders take advantage of various methods of trading crypto and receiving high profits on hodling.

As a result of increased fees on the Ethereum network and some sharp market sell-offs, a pullback for token prices and DeFi transactions began in the last weeks of February. Now, the trend seems to have been reversed during the previous week since activity on decentralized exchanges has started to rise again.

As we can see from the chart above, DEX volume grew in the last weeks of February, which was followed by a downtrend that lasted until the first week of this month. This meant that the total volume traded on all DEXs fell to just $603 million ten days ago.

The uptick noticed in mid-March was a result of the NFTs boom.

A possible explanation for why the activity on DEXs grew in recent weeks can be found by comparing the volume charts with the price chart of Bitcoin. This would indicate a plausible connection between a dip in Bitcoin’s price and an increase in trading activity.

When the price of Bitcoin fell between April 6th and April 8th, DEX volume started to increase, and it went to reach a peak on April 7th – exactly when the Bitcoin price was bottoming out and was getting ready for a new climb.

Following the new peak of $64,840 on April 14th, Bitcoin’s price fell through April 24th, remaining below $50,000.

Meanwhile, DEX volume had a notable increase starting April 18th, which was the day in which BTC had a 16% pullback in its price from $60,900 to $50,500. It has remained high ever since, which would suggest that traders may be rotating out of Bitcoin into altcoins as they hope the King of Crypto only goes through a small correction.

The daily DEX volumes reached their highest level in the periods in which the crypto market, in general, noticed an important downturn that had its total market cap fall by over $324 million.

Source: CoinTelegraph.com and Dune Analytics

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