Exchange Volume of Defi Tokens on Decline; $MKR $UMA staking on Rise

Published by
Exchange Volume of Defi Tokens on Decline; $MKR $UMA staking on Rise

The Defi craze of 2020 has continued this year as well, the total value locked in various Defi protocols breached $45 billion for the first time. At present, the volume of defi tokens on centralized exchanges compared to its total supply is below 10% for the likes of $UMA, $MKR, $COMP, $UNI, and $SNX. While a few including $AAVE and $BAT has over 15% of its supply on centralized exchanges which is considered bearish for a defi token.

Source: CryptoQuant

The ratio of exchange volume of these tokens compared to total supply suggest how much the token is being used for various purposes such as staking, institutional buying, and DEX user. A percentage below 5 is considered healthy for a defi token. As per the current volumes $UMA, $MKR, and $COMP look bullish while $BAT with over 15% exchange supply looks bearish.

For $MKR, exchange holdings are decreasing, and fewer tokens on exchanges compared to the total supply. For $BAT, exchange holdings are increasing meaning holders are transferring it for selling on centralized exchanges.

Advertisement

The Changing Defi Dynamics

The Defi ecosystem works on top of the Ethereum network primarily dealing in ERC-20 tokens or any other Ethereum based token protocol. However, during this bull season the growing demand for ETH and rising popularity of Defi has made the Ethereum network quite sluggish with high gas fees. The rising gas fee in the recent past has made many Defi protocols barely usable as even a simple swap was costing on average $4-$5.

In the wake of growing scalability issues on the Ethereum network, several alternatives have gained a lot of traction in the recent past especially Binance Smart Chain (BSC). BSC has risen as the go-to option for most of the Defi projects and even spot traders as it offers a very lower transaction fee and mimics ethereum network’s functionality.

Advertisement
Share
Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Trump Insider Whale Reloads $430M Long on BTC, ETH Ahead of Tomorrow’s Fed Rate Cut Decision

The “Trump Insider whale” has reportedly opened a $430 million long position in Bitcoin and…

October 29, 2025
  • News

Breaking: $2.6B Western Union Announces Plans for Solana-Powered Stablecoin by 2026

Western Union has announced plans to launch a U.S. dollar-backed stablecoin built on the Solana…

October 28, 2025
  • News

Trump Media Launches Polymarket Rival, Eyes $9B Prediction Market with Crypto.com

Trump Media & Technology Group has announced a partnership with Crypto.com to launch Truth Predict.…

October 28, 2025
  • News

Bitget Lists Common Token, Launchpool Offers 36M COMMON in Rewards

Bitget, the top Universal Exchange (UEX), has introduced the COMMON token to its Launchpool, as…

October 28, 2025
  • News

Coinbase Prime Taps Figment to Boost Institutional Staking on Solana, Cardano, and Sui

Coinbase Prime has entered a partnership with Figment Inc. in a bid to bring institutional…

October 28, 2025
  • Altcoin News

Here’s Why Zcash (ZEC) Price Tanked 10% Today Following 500% Rally

Zcash price tumbled over 10% in the last 24 hours after a more than 500%…

October 28, 2025