Declining DEX volumes reflect DeFi investors shift to Bitcoin

While the hack bumped daily DEX volume to just over $5 billion for the day, the anomaly was short lived and since then volume still seems to be on a steady decline.

Despite the major correction seen across DeFi assets and reduced trading volume, the total value locked has remained near record highs.

DeFi season ends right as the Bitcoin bulls come back.

Reduced trading volume for DeFi shows that traders have lost interest in to a degree, taking profits and returning to Bitcoin.

This is further cemented by the rising volumes seen across Bitcoin derivatives products.

While it's difficult to discern the impact institutional players are having on Bitcoin price action, the recent acquisitions and surges in options and futures volumes do indicate that bulls are at play.

The total value locked in DeFi has remained high, but this may change soon due to the reduced trading volumes on exchanges.

Since a big part of rewards on DeFi protocols are associated with trading volumes, lower volumes will lead to lower yields for liquidity providers and further diminish investor's interest in DeFi.

"There has been a bit of a drop off since the end of summer, but I think that is only natural. Periodically hype outruns real growth and so is followed by a bit of a cool off period. However, from a fundamental perspective there is nothing that has damaged the story of DeFi and DEX growth. New projects are being developed."

"Now in addition to wBTC, Ethereum DeFi will be introduced to wrapped Zcash and Dash. DEXs facilitate asset exchange and so should benefit from overall DeFi growth. Moreover as we see the play-to-earn grow in DeFi we may see more interconnectedness of the gaming sector with DeFi. That activity should also affect DEXs.".