The trading volume on decentralized exchanges, or DEXs, reached $42.6 billion during Q3 2020, marking an increment of ane,132% on the previous quarter, according to a recent industry study from TokenInsight.

Withal, Oct saw figures pull dorsum a niggling from September highs, as Bitcoin (BTC) prices started to pump, re-capturing traders' attention following the previous few months' decentralized finance, or DeFi, boom.

Volumes in July solitary reached $five billion, which was upwardly ane third on the entire Q2 effigy. Monthly volumes continued to rise throughout Q3, posting an average monthly increase of over 140%.

The share of volume between an ever-increasing number of competing DEX was still fairly concentrated, with up to l% of trading occurring on UniSwap, and nigh 3 quarters accounted for by the elevation three exchanges.

Even so, eight decentralized exchanges topped $i billion of trading volume in Q3, compared to cypher in the previous quarter.

One of the drivers the written report posits for this increase in volume is the "wealth effect" brought by DEXs, which accept opened up a "market between primary and secondary."

According to TokenInsight, this can give the average user admission to high-quality projects before they percolate through to secondary markets, and was most noticeably seen during the DeFi craze.

Additionally, the rise of DEX alters the relationship between token projects and centralized exchanges. This was previously heavily skewed in favor of the exchanges, which could demand large payments to list tokens.

DEX provides a market place exterior of this, in which projects can thrive without major centralized exchange support.

Still, even with the reported Q3 gains in trading volumes on DEX, they yet simply account for 1.24% of the full spot market transactions for this period.