DEX (decentralized tokens) have outperformed centralized exchange tokens.

By CryptoChemistry | CryptoChem | 11 Jun 2020



DEX tokens have outperformed their centralized counterparts 5 times this year, with an average increase of 240%.

Yields on decentralized exchange tokens (DEX) so far this year are more than five times higher than their centralized counterparts.

DEX tokens have increased 241% on average so far this year, while centralized exchange tokens have only increased 44%.

And that doesn't include some recent increases. The Kyber (KNC) token led with an increase of over 420%, KNC almost doubled in price and LRC increased by 46%, while the main centralized exchange tokens have shrunk on average.

DEX spot volumes have increased from $ 5 million to $ 25 million; DEX's share of total trade volume has increased to 0.5%, double the 0.25% a year earlier. Although still minimal compared to centralized exchanges, DEXs are growing much faster in part due to the contribution of DEX aggregators, which spread token swaps across multiple DEXs in order to get the lowest prices for merchants .

Centralized exchanges use a token-burning procedure, whereby they increase the price of tokens by decreasing supply. However, this process is entirely at the discretion of the organization and token holders depend on a centralized body to balance liquidity with increasing token value.

In comparison, DEX tokens have greater potential (and potentially greater risk). Due to the relatively low volume of trading on DEXs, continued growth could exponentially inflate token holders' earnings.

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