- Experts attribute this to Pancakeswap’s upgrade to version V3
- And to a general decline in CEX trading volume
BNB Chain’s volume on decentralized exchanges increased markedly in April and May. This follows from data compiled by The Block Research. BNB Chain swaps totaled $11.79 billion in April. In May, this figure reached $19.52 billion.. We’re seeing a 65.3% or $7.7 billion increase.
The Block Research analyst Kevin Pan believes this effect came from the Pancakeswap Exchange upgrade to version V3.. Because of this, AMM has switched to a concentrated liquidity model similar to Uniswap V3. This gives much more flexibility to liquidity providers. After the V3 update, players can set price ranges according to current market prices.. That’s much more than their liquidity (about $230 million).
The analyst doesn’t rule out other reasons for the rise – particularly the problems of the leading centralized exchanges.
“It’s hard to say definitively whether there is a more global departure from CEX, the largest of which is Binance. But the rise in the BNB Chain does coincide with the jump in May, when trading volumes on the DEX rose to record levels.”
Remind that CEX trading volume declined 15.7% in May. The drop continues for the second month in a row and is due to problems in the industry.
The decline continues for the second month in a row and is due to problems in the industry.