Having already witnessed some major events affecting the growing DeFi category. Such as Compound’s governance token COMP quickly becoming a ‘DeFi unicorn’ in just a few weeks. It is no surprise to see volatile activity within DEXs.
DappRadar is working on providing a complete DEX overview for Q2 2020. Before that, let’s have a look at the last days of Q2 as they provided a fascinating insight into the evolving state of decentralized finance.
Key takeaways
- Stablecoins still hold a leadership position with 66M USD in 24hr trading volume
- Governance tokens have generated nearly 55M USD in daily trading volume
- The number 1 traded pair is DMG/ETH
Top 5 DEX trading pairs
It is not a surprise nowadays to see governance tokens within the top positions within DEXs. We already witnessed and reported on COMP making its mark a few days ago. Today we see the pair of COMP/ETH in 4th position.
As for the DMG token, we see a tremendous increase, reaching 3M daily trading volumes. It is still very early to say how it is going to evolve in the future, but the figures are impressive.
What is the DMG token?
In the first place, DeFi Money Market (DMM) is an ecosystem built on the Ethereum blockchain that bridges interest-generating real-world assets into the Decentralized Finance (DeFi) ecosystem. Claiming to perform in a transparent, trust-minimized, overcollateralized, and permissionless manner.
The DMM DAO governance token, DMG, is the tool through which the community governs and grows the DMM ecosystem and the underlying protocol. DNG is a critical component that stimulates user participation in decision making and mitigates centralized governance risk.
Within just 9 days of existence, the value of the DMG token already increased by 180% and seems to be further increasing.
Conclusions
Despite the recent events surrounding the COMP and DMG tokens joining the cryptocurrency family. We still see stablecoins as the most traded coins in the decentralized finance world.
On the other hand. Governance tokens have already made their mark in 2020, and still, it is not clear if the peaks are permanent. What we can conclude is that governance tokens have already fueled DeFi and DEX with a new spate of growth, growth that does not appear to be slowing down.
Data sources
- 24 Volumes are collected from Coingecko.com
