The number of Ethereum DEX traders has fallen from more than 95,000 at the beginning of the month to just 63,000 last week, the lowest number of traders since February.
In early March, amid a broad rally in cryptocurrencies, a growing number of traders focused specifically on meme coins, which backed decentralized exchanges across multiple chains.
In fact, Ethereum was contested for control for much of this rally, as the network offering cheaper transactions garnered a lot of attention and hosted some of the most popular new tokens at the rally. .
But of course, Ethereum was still able to bask in the glory of the rally due to the number of DEX traders and the number of DEXs. volume It has reached its highest price since the meme coin mania that occurred in March 2023, mainly around the largest layer 1.
And the Ethereum trend appears to be a sign of a broader slowdown in the decentralized exchange market.
First of all, the GMCI MEME index is still up significantly; surpass If you consider the top 30 companies, their Layer 1 and Layer 2 counterparts, and even Bitcoin and Ether themselves, it looks like most of that gain is behind it. As of the end of March, the index had risen more than 300% since the beginning of the year, but it is currently only at 200% and has shown a sharp decline in April.
Between spot volumes of CEX picked up In mid-April, mainly driven by asset declines due to concerns over Middle East conflict, DEXs do not seem to have taken the same view. rebound.
The recent turnaround may be related to darker market sentiment. Not only are geopolitical tensions weighing on markets, but consistently better-than-expected U.S. inflation numbers are also leading traders to believe the Federal Reserve will cut interest rates less. This is a predictable factor.
Market downturns can sometimes lead to increased trading by panicked investors, but decentralized exchanges don't seem to realize that. The main reason for his recent decline in DEX activity appears to be a decline in excitement surrounding meme coins.
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