The number of Ethereum DEX traders fell from more than 95,000 at the beginning of the month to 63,000 last week, the lowest number of traders since February.
The number of traders increased amid a broad cryptocurrency rally in early March, with a particular focus on memecoin, which facilitates decentralized exchanges across multiple chains.
Ethereum was actually challenged for dominance during this rally, as networks offering cheaper transactions attracted a lot of attention and hosted the most popular new tokens in the rally.
But of course, Ethereum was still able to enjoy the glory of the rally due to the number of DEX traders and the number of DEXs. volume It has reached highs not seen since the memecoin mania that occurred in March 2023, mainly centered around the largest layer 1s.
And Ethereum’s trends seem to be a sign of a broader slowdown in the decentralized exchange market.
First of all, the GMCI MEME index is still broadly surpass The top 30, Layer 1 and Layer 2, as well as Bitcoin and Ethereum themselves, seem to have the majority of their profits behind them. At the end of March, the index rose more than 300% compared to the previous year, but it is currently only up 200% and is showing a sharp decline in April.
And the spot trading volume of CEX is picked it up The DEX did not appear to be the same in mid-April, mainly due to asset sales due to concerns about conflict in the Middle East. rebound.
The recent turnaround may have something to do with more gloomy market sentiment. Not only are geopolitical tensions weighing on markets, but persistently higher-than-expected inflation data in the U.S. has traders expecting the Federal Reserve to cut interest rates less quickly.
Sometimes market downturns lead to panicked investors trading more, but decentralized exchanges don’t seem to be seeing this. The decline in interest in Memecoin appears to be the main reason for the recent decline in DEX activity.
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