In this article i am going to talk about 4 Decentralized Exchanges (DEX) which seem to be the best and promising out of the rest. We have about 63 DEXs but i came up with only 4, so i am going to explain why i see these as the best and promising.
What are Decentralized Exchanges?
These are crypto currency exchanges which allows users to exchange crypto and token without being in control of traders and investors assets. Instead is a Peer to Peer where traders exchanges cryptos currencies amongst themselves.
What Determines if a DEX has a brighter future?
- Crypto Asset Type
If a DEX has a higher capitalization and being ranked amongst the giants then it is good or it has a potential. It has potential in the sense that it will boost traders confidence, no trader will exchange his tokens and altcoins on an DEX which has lower liquidity.
Uniswap (V2) Is the largest DEX which is more liquid with totals capitalization of $1,419,590,081 USD and it was launched in 2018. Since it runs on the Ethereum blockchain, it major pair being traded against other pairs is Wrapped Ethereum (WETH)
MDEX (BSC) Is the second largest biggest DEX with a total capitalization of $1,328,112,689 USD and it was launched in April 2021. This one can be a threat and there are higher chances that it will claim the top position as it is following Uniswap closely. The top traded tokens on that DEX are USDT, BUSD, USDC and WBNB but Tether(USDT) is the most traded pair or pair with higher liquidity.
Sushiswap Is the 3rd largest DEX with total capitalization of $791,348,029 USD which is still small as compared to Uniswap and MDEX but it has a potential though its not going to be easy as Uniswap has grabbed the large market share. Considering that it was launched in 2020 it has made little progress as compared to the new comer MDEX. USDC and WETH are the most liquid pairs on sushiswap.
BINANCE DEX is sitting on number 29 of the log and this one has a small capitalization of $4,609,815 USD but i see huge potential in it. It was launched in 2019 and has made little progress but since its main pair is BNB it can benefit from that since the Binance Exchange and Binance coin are doing well there are higher chances that it will benefit from that.