Recent DEX metrics and 2021 themes

In November, it looked like the story for DEXs was one of a bubble that had popped and a significant downturn in volumes that followed. After Compound’s liquidity mining incentives — where users were rewarded COMP for borrowing and lending using the protocol — a wave of interest kicked off in decentralized finance driven by projects replicating Compound’s success.

The total trade volume on DEXs increased from $3.0 billion in 2019 to $116.7 billion in 2020 (a 3,790% increase). However, interest peaked in September at $28.1 billion and had dropped 34.7% by November.