Trading volume on Ethereum decentralized exchanges rebounded even as cryptocurrency prices retreated.
Ethereum DEX had solid activity
According DeFi Callsthe volume on Ethereum (Ethnicity) rose 18% to $9.88 billion, while other chains’ revenue fell. Solana (SUN) DEX volume fell by 8%, while Base, BNB Smart Chain, Arbitrum, and Polygon fell by 4%, 14%, and 10%, respectively.
The worst performing chain was Tron (TRX) whose volume fell by 52% to over $642 million. This drop came as the popularity of the recently launched SunPump meme coins waned. According to CoinGecko, most SunPump tokens, such as Sundog, Tron Bull, and Muncat, have retreated from their all-time highs.
Most DEX networks on the Ethereum network saw a huge spike in volume. Uniswap’s volume increased by 14.2% to $5.7 billion after the company reached a settlement with the Commodity Futures Trading Commission over its margin products. It agreed to pay a $175,000 fine and stop offering these solutions in the US.
Curve Finance Volume leap by 68% to over $1.48 billion, while Balancer’s, Hashflow, and Pendle increased by 68%, 196%, and 85%, respectively.
Bitcoin and most altcoins fell
This volume came in a rough week for the cryptocurrency industry as most assets plummeted. Bitcoin fell to $52,550, its lowest point since Aug. 5 and 26% below its all-time high. Ethereum also fell below $2,200, down 44% from its highest point this year. The total market cap of all coins fell below $2 trillion for the first time in months.
There is a risk that the sell-off could continue as a sense of fear has spread across the market, with the Crypto Fear and Greed Index falling into the fear zone of 34. Cryptocurrencies tend to experience more weakness when investors are fearful.
DEX and CEX exchanges also experience weak volume in periods when cryptocurrencies are falling. According to DeFi CallsVolume on Ethereum DEX platforms fell to $49.5 billion in August from a peak of $69 billion in March as most coins surged.
The same occurred on other DEX platforms, as volume fell from over $257 billion in March to $240 billion in August.
Looking ahead, cryptocurrencies may benefit from the upcoming start of Federal Reserve interest rate cutsData released on Friday showed the unemployment rate fell slightly in August to 4.2%, while the economy added 142,000 jobs. Risk assets tend to rally when the Federal Reserve cuts rates.
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