Try Quests to earn cryptoParaSwap: Volume and DEXs
This analysis is a review of the total monthly swap volume on ParaSwap over the past year.
ParaSwap is a multi-chain decentralized exchange (DEX) aggregator on the Ethereum blockchain. It serves as an intermediary between DeFi services and users, by comparing liquidity from over 20 DEXs and bringing all functions together into a single platform.
In this analysis we will go over the following points:
- Total monthly swap volume on ParaSwap over the past year. How has the swap volume changed over time?
- Which DEX’s is most of the swap volume coming from?
To start, we first need to find the Paraswap contract addresses:
- Paraswap v1: '0x86969d29f5fd327e1009ba66072be22db6017cc6'
- Paraswap v2: '0x9509665d015bfe3c77aa5ad6ca20c8afa1d98989'
- Paraswap v3: '0xf90e98f3d8dce44632e5020abf2e122e0f99dfab'
- Paraswap v4: '0x1bd435f3c054b6e901b7b108a0ab7617c808677b'
- Paraswap v5: '0xdef171fe48cf0115b1d80b88dc8eab59176fee57'
Once we got all of them, we can use the ethereum.udm_events table and filter the from_address field with one of these addresses to get all the Paraswap's transactions. To get the volume we will use the ethereum.dex_swaps table to query the transactions that we previously had obtained.
The previous chart represents the monthly swap volume on ParaSwap over the past year. There was a big crash in the Market on April-June, but with the release of Uniswap v3, May and June still got some decent volume on Paraswap. When the market started to seem bullish again, and hit a new All Time High(ATH) on October, the volume followed the Bitcoin tendency, hitting a volume ATH of 2.46B$. Finally, on December there was a huge market dip where we can see the volume going down to 1.45B$. The graph below shows the Bitcoin price over the past year.
We can see that most of the volume is coming from Uniswap v3. Being the latest version of Uniswap, it provides better capital efficiency and accuracy compared to its previous versions. With a very flexible fee structure and low-slippage trade execution, it was launched on May 5th, 2021. We can see that there is a big difference in volume compared to the other 3 DEXs. It is worth noticing, that there was a huge volume increase in all DEXs but Curve on October and November 2021 with the market ATH as mentioned before. The decrease in volume of Curve was probably caused by Sushiswap's Trident release at the end of July, as the Hybrid Pool they released, reduced swap price impacts by using a stableswap curve to trade between similar assets such as stablecoins (in the same way Curve did). As Trident had 3 other pool options, many people decided to stop using Curve and start using Trident for convenience.
