Yield farming strategies using decentralized finance (DeFi) protocols have pushed DEX volume past its all-time high.
According to data compiled by Dune Analytics, decentralized exchange (DEX) volume broke its all-time high last week, generating $503 million in trading. Curve Finance and Uniswap were responsible for the largest proportion of trading volume, at $211 million and $135 million, respectively.
Most crypto analysts are attributing the rise in demand for DEX liquidity to growing interest in yield farming.
As outlined in a report by Forbes, DeFi yield farming has become the latest craze in cryptocurrency investing. Users are able to leverage DeFi lending products and reward protocols in order to generate high rates of return.
You can earn 100% annual interest rate using USD in multiple places on Ethereum right now. How?
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— Tony Sheng 🦉 (@tonysheng) June 20, 2020
In response to the rising interest in yield farming, DEX volume and liquidity has undergone a significant uptick. Last week’s trading volume broke the previous all-time high established in March 2020 during the crypto market crash in response to COVID-19.
In addition, the trading volume for the month of June has already eclipsed $1.08 billion, smashing last year’s figure of $325 million over the same time period.
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