DeFi and DEX are Going To Explode!
The other day I wrote a quick article on The Day of The DEX In which I went over why DEX or Decentralized exchanges are going to start heating up.
*This article is all opinion based and not financial advise.
This speculation of mine comes from the massive volumes that have been recently leaving exchanges and for good reason! Exchanges have always been an issue in the past just as much as the rug pulls of DeFi apps you had rug pulls of crypto exchanges.
Years later we are talking about 5+ years after the fact we are finally starting to see those lawsuits show up for those who cut and run on these exchanges. The issue with that is it's slow and often times nearly none of the funds are actully returned to people.
A Few DEX platforms that are heating up already
Sushi
TLV: 519.5 Million
Uniswap
TLV: 5.25 Billion
PancakeSwap
TLV: 2.97 Billion
For the most part these DEX platforms really haven't slowed down much in terms of their transaction capacity. Sure they are off their all time highs and sure their price has dropped but so has the entire crypto marketplace in the last year and a half.
Increase us back into the 2 trillion dollar range of cryptos market cap and you'd be seeing many of these jump in dollar value as well. There's two big factors to take into account on these DEX platforms however. Those being...
The emissions of the token have they been adjusted over time due to the demands of the platform? For example Pancake swap has reduced their emissions through a decentralized vote and I think that's critical to the success of a platform. Just like a bank or any business if supply is high emissions can remain the same or even ticked up. While in a bear market like now you would want to drop that emission as there's less transactions and demand for the service.
The use cases. If there are not good use cases for high volume and continued growth you can pretty much count that platform as dying out. A DEX thrives of more transactions from the fees collected for each.
Growth
I think we all saw how powerful DeFi and Dex platforms can be however of course plagued with rug pulls, hacks etc it's high risk for sure. I would beg to say it's no higher risk then just about any other crypto platform and area.
What's clear however is with the oppressively nature of governments over crypto exchanges and new laws they are trying to pass which by the way let me remind you do not currently exist! It's clear that people are packed up off of these exchanges and into their own wallets for safer keeping. I believe the next moves we will see is massive usage of DEX and Defi come the next bull run. Which will end once the government tries to step in and regulate those as well.
What are you thoughts on DEXs? Do you feel they are the next big thing? If so what ones are you liking?