The market is full of flowers

The cryptocurrency rally has been accompanied by a weaker dollar as President-elect Joe Biden pushes through more coronavirus treatments, prompting the S&P 500 to post its best week since April with a 7% gain, but Bitcoin is still on the upside. A 13% jump stole that attention.

Elsewhere, the rally was underpinned by more positive news, such as Paypal's crypto product service, and central banks everywhere, including Canada, Thailand and Brazil, planning to promote CBDC.

In addition, Ethereum has also entered a milestone. The Ethereum Foundation announced on Wednesday that Ethereum 2.0 will finally go live on December 1, and the mortgage contract is now available. Backers have deposited nearly 57,505 ETH at the time of writing.

In addition to the Ethereum 2.0 hotspots, the Polkadot ecosystem is gradually prospering, closely connected, and mutually beneficial cooperation.

In addition, the high-profile card slot auction also attracted the attention of all parties. This card slot auction is divided into three stages. The first stage is the completion of the rococo test, the second stage is the launch of the kusama parachain and the auction, and the third stage is the launch of the Polkadot parachain and the auction.

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Can DeFi with a market value of tens of billions break through with DEX?

According to the Coingecko platform, the total market value of DeFi has reached 15.505 billion US dollars. As can be seen from the figure below, it is showing an upward trend. As of writing, the total locked-up volume of DeFi protocols on Ethereum is about $14.94 billion. Among them, the top three are Uniswap V2 with USD 3.24 billion (+5.26%), Maker with USD 2.21 billion (+1.13%) and WBTC with USD 1.89 billion (-0.1%).

In the face of a market value of tens of billions, DEX is sending a signal: in addition to solving privacy issues and restoring decentralization in the cryptocurrency field, DEX is becoming a new "spoiler".

Some people think that the translation of DEX as "decentralized exchange" is unreasonable. "Accurately, I have a decentralized transaction", which is a state, not a destination. Indeed, as he said, the traditional CEX plays more of a broker role in the transaction process, which is a more reasonable and suitable service for novice investors. If you are a more mature investor, you will prefer DEX. They believe in smart contracts more than people, and even if they lose money, they have a high psychological acceptance.

You don't need to complete any KYC process, and you can trade freely without depositing funds in any centralized platform.

The performance problem of the Ethereum network obviously limits the development of DeFi, and of course also limits the DEX. Cross-chain DEX is imminent.

The underlying infrastructure is closely related to market demand. DEX began to integrate on Polkadot, providing cheaper and faster options for users who are willing to give up the Ethereum network.

For Polkadot-based DEX, Zenlink should be a case that has to be mentioned.

Zenlink is built on the Polkadot blockchain instead of the default Ethereum network of most DEXs, and it can fully interoperate with assets on different Polkadot parachains.

Guo Tao, head of Zenlink China, said that with the approach of the Polkadot parachain card slot auction, the liquidity problems caused by staking KSM or DOT are bound to become prominent. 1.0 Beta release.

The plan is to give priority to cooperation with Polkadot DeFi platform Acala and Staking liquidity solution providers Bifrost and Stafi, so that users can complete related DEX transactions on Zenlink, enjoy the Staking benefits brought by card slot auctions, and also obtain the corresponding KSM or DOT fluidity.

Zenlink also provides a plug-and-play DEX Module, which can be accessed by parachains to provide transaction liquidity for Liquidity Provider (LP) and create DEX core functions such as liquidity pools of any currency.

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Weekly DEX volume Source: Dune Analytics

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Daily DEX volume Source: Dune Analytics

While this may disappoint investors in the short term, it gives developers some time to polish and focus on the product itself.

CEX usage trends are unlikely to change anytime soon. This means that once the Polkadot parachain function is launched and Polkadot enthusiasts choose DEX products again, then the first cross-chain DEX that successfully provides a platform with low prices, privacy protection, and a fast user-friendly interface will occupy the market.