In the rapidly developing world of decentralized finance (DeFi), the ability to operate across chains is crucial to the blockchain ecosystem. Axelar is creating a more connected DeFi infrastructure—building decentralized infrastructure for the features that attracted the vast majority of new users during the last bull run.
However, most of these users end up on centralized exchanges (CEX). During the bull market of 2019-2021, CEX used Super Bowl advertising and other means to attract users. To connect these users with the cryptocurrencies they need, centralized exchanges also have an easier way – SQL databases.
Now, decentralized exchanges (DEXs) have equivalent infrastructure—rapidly providing liquidity to more than 50 major public chains, allowing trades to settle faster than on a single blockchain. Currently, DEX has achieved the same capabilities as CEX: trading any token on any chain.
Both Binance and Coinbase realize the importance of cross-chain for web3 and have invested in the Axelar network while building their own decentralized infrastructure. The support of these key players provides the Axelar Network with the support and resources it needs to drive innovation and developer adoption. And, it’s already happening: today, the trading volume generated by DEXs partnered with Axelar accounts for more than half of the total DEX trading volume, see “Using Axelar in cross-chain infrastructure”。
The largest CEXs are investing in programmable cross-chain networks like Axelar and developing their own decentralized systems, which illustrates the fact that in the next wave of cryptocurrency prices, decentralized entry points will become the new trend.
The leading DEX is using Axelar as a backend to provide liquidity pools for multi-chain asset pairs. For example:
dYdX is using Axelar, allowing users to deposit money into the worlds largest decentralized derivatives exchange with one click.
Uniswap, the world’s largest decentralized spot exchange,Deployed on Filecoin with Axelar, the protocol is the world’s largest decentralized data storage protocol.
With Axelar’s on-ramp infrastructure and cross-chain capabilities, users can easily access and trade assets across different chains, benefiting from enhanced liquidity and a more connected DeFi experience.
These milestones are real, but there is still a long way to go and much to build. For more information, pleaseSubscribe to Axelar EmailsGet updates to the networks 2024 roadmap.
