Why analysis of DEXs so important?

Decentralized exchange is a type of online trading platform and the most common type of exchange for buying and selling digital currencies.

Each blockchain has many DEXs to execute exchanges. The importance of DEXs on networks has been summarized in the below statements:

• Find out the most used tokens on blockchains
• Determine the behavior of users by considering application of DEXs
• The success of blockchain could be evaluated by Attracting new users

Overview of analysis:

This analysis has been executed on the DEXs o Solana and Ethereum networks. The parts of this investigation are as below:

1. Comparison of DEXs application on Ethereum and Solana

2. Determine the most used DEXs on Ethereum and Solana

3. Find out the most used tokens and swap pairs on blockchains

The time period of this analysis is from May, 2022. The main reason of this selection is because from that date, the market crush happened and the start of bear market occurred in this time frame.

Approach:

The data provided by Flipside has been used to handle this analysis.

• DEXs on Solana

  solana.core.fact_swaps where SUCCEEDED='TRUE'

• DEXs on Ethereum

  ethereum.core.ez_dex_swaps

In this dashboard, the Use of useless graphs have been avoided and only charts with reasonble application have been included.

Part 1: Real comparison

Key findings:

First of all the application of DEXs on Ethereum and Solana has been compared by number of swaps, distinct swappers and attracting users by analyzing newcomers.

• After ==first week of July 2022==, the number of swaps and distinct swappers on Ethereum have been passed the Solana blockchain.
• As expected, the highest usage of DEXs on both Ethereum and Solana belong to the ==market crush== and users want to exchange their assets to stable coins and prevent extra loss.
• June 26, 2022== was the breakpoint for swappers on Solana and after that date a sudden drop happened.
• The number of newcomers on Ethereum DEXs has been passed the Solana but the general pattern of newcomers has decreasing movement in this time period.

Swaps on Solana

Swaps on Ethereum

Part 2: Analysis of Swap programs

Findings:

• The ==Jupiter== has been dominated the count of swaps on Solana but from the distinct users aspect, the leader is ==Orca==.
• The ==Uniswap v-2== is the leader of swap and swappers on the Ethereum side.
• Application of various platforms on Solana dropped as number of swaps on Solana decreased but for Ethereum the numbers are more consistent.
• The cumulative graphs indicate the grow speed of platforms.

Part 3: Analysis of popular tokens

Popular tokens on Solana

Popular tokens on Ethereum

Key findings:

==The best way to find the most used token on each blockchain is to find out the tokens with highest swaps on them.==

• WETH== is the most used token on Ethereum blockchain and after that ==USDC== stands. Also, the most used swap pair on Ethereum is ==WETH/USDC== with over 1 million swaps after May, 2022.
• On Solana, the ==USD coin== and ==wrapped SOL== are the most used tokens but the most popular swap pair is ==GST/USD coin==.
• On ==June 13==, 2022 the swaps on ==WETH/USDC== pair reached its highest level because ==the bears maintained their selling pressure on June 13.
• The highest pressure on swaps of ==wrapped SOL to USD coin== happened on market crush on May.
• The grow rate of swap pairs verified the consequences.

Useful links on Solana:

• Swaps on Solana
• Platforms: Jupiter, Orca, Saber and Raydium
• Github on DEXs

Useful links on Ethereum:

• Swaps on Ethereum
• Platforms: Uniswap, Sushiswap, Balancer and Curve
• Github on DEXs

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani