While it might seem that DeFi reached its bottom during Q3 2020, the sector still closed the last quarter with incredible performance. However, few of its aspects did as well as decentralized exchanges (DEXs) did, according to the latest report form Messari, which saw a significant increase in on-chain trading due to heightened speculation around yield farming DeFi projects.People were making money hand over fist in Q3 2020
The newest darling of the crypto industry, DeFi, has seen a fair share of ups and downs in its lifetime, but few of them could even come close to the turmoil the sector experienced this summer. While at certain points it seemed that DeFi simultaneously reached both its top and its bottom, the latest report from crypto analytics company Messari showed that DeFi had actually seen its heyday last quarter.
Messari’s report, analyzing the DeFi sector in Q3 2020, noted that the farming craze and rampant speculation on governance tokens recorded in the past few months meant that “people were making money hand over fist.”
However, with most DeFi tokens now down around 50 percent from their Q3 highs, Messari’s report begs the question—who profited the most from the craze?
The answer is simple and rather unsurprising—decentralized exchanges.
According to the report, DEXs that were trading in the single-digit millions at the start of the year managed to surpass $1 billion in a single day, leaving much larger and much more established centralized exchanges in the dust.The DeFi craze essentially left centralized exchanges obsolete
The incredible performance decentralized exchanges recorded in the past quarter doesn’t reflect the chaos that went on in terms of prices. This massive growth began in Q2 when the average daily trading volume on decentralized exchanges increased 500 percent, reaching $80 million. And while the 500 percent growth came as quite a shock back then, it seems like an anomaly when compared...