Spot decentralized exchange (DEX) trading volume has dropped to its weakest level in almost two years, a slide that has been taking place in the main crypto market.
DEXs have become a central place for investors in recent months, mainly because they are now at the crossroads between crypto and traditional currencies.
The position is improving with the arrival of the stock, whose explosion earlier in the month created a lot of interest and interest in the stock that was divided into trading groups before the arrival.
Spot DEX volume decreases
Blockworks’ Spot DEX dashboard showed a significant drop in activity in these areas, the numbers pointing to a market that has lost its former power.
Volume, which measures the combined inflow and outflow of assets on the exchange, has fallen to around $130.77 billion. This number is 26% below the $177.55 billion that was sold in June and shows how quickly the amount of money has stopped.
The latest reading shows the lowest since September 2024, when DEX volume was around $108 billion.
Such a large decline indicates a bearish correction in the market and points to a large outflow of funds across the 35 blockchains where the DEX service is tracked.
The decline was moderated by the daily decline in July. The trading volume of the Spot DEX exceeded $6 billion only once, around the 8th of July, when it reached approximately $6.191 billion. The weekly numbers say the same thing, being bearish and showing a gradual weakness in the market.
Stablecoin supply is limited despite the rally in July
The stablecoin market has provided a significant portion of the DEX’s volume, solidifying its position as one of the busiest corners of the stablecoin market.
Blockworks reported that about $31.53 billion in stablecoin volume at the same time, the number increased gradually until July. That figure was close to 30% of all DEX transactions at the time.
Stablecoins commanding such a large share of the flow is not necessarily pointing to a bullish market, although the total crypto market capitalization surped by about $192 billion, with 11% profit, in the same window.
A closer look at the DeFiLlama stablecoin market from July 1 to today reveals a sobering story.
At the time when the main market went up, stablecoins moved elsewhere and contracted.
Stablecoin market capitalization has fallen by $2.23 billion so far this month, down to $308.473 billion. Until supply starts to increase again, the chances of a sustainable market remain slim.
On-chain FX are tokenized equities
The correlation between crypto and traditional currencies continues to strengthen, yet the number of foreign exchange (FX) currencies and stocks traded has followed the market’s decline.
Week-to-week FX turnover is the lowest since the beginning of July, with a volume of $646.12 million compared to $721.42 million made in June.
The volume of tokenized equities has weakened on the side, reaching $ 1.405 billion. The reading represents a slight drop from June’s $3.56 billion, which remains the second-highest recorded since its inception.
Brief Summary
- The Spot DEX’s trading volume has dropped to about $130.77 billion, its lowest level since September 2024 and a 26% drop since June.
- Stablecoin supply decreased by $2.23 billion this month even as the crypto market rose.
