The volume of transactions on Ethereum's decentralized exchanges (DEXs) has experienced a notable downturn, with the number of daily unique traders falling to around 40,000 addresses. This figure represents a staggering 12-month low and marks a significant decline from the peak of 95,000 traders seen in late 2024.

This sharp drop in participation within the decentralized exchange market comes amidst a broader cooling of the cryptocurrency market, characterized by reduced speculative capital inflows. The leading player in the Ethereum DEX ecosystem remains Uniswap, which dwarfs its competitors; for example, SushiSwap is currently attracting only about 2,000 daily active addresses.

As trading volumes have contracted, the overall activity within Ethereum DEXs has also diminished. In March 2025, the trading volume for Ethereum-based DEXs fell to $57 billion, nearly half of the $112 billion recorded during the market peak in December 2024. This volume reduction reflects not only the decreased user participation but also suggests that average trade sizes may be shrinking as market participants adopt a more cautious approach.

Despite this downturn, decentralized exchanges still account for approximately 13% of the total spot trading volume when compared to centralized exchanges. This statistic indicates a gradual upward trend that has been observed over recent years, revealing that while Ethereum's DEX activity may be slowing, the appetite for decentralized trading remains.

The current trading landscape underscores both the advantages and disadvantages present in centralized and decentralized venues. Centralized exchanges are known for providing superior liquidity, lower transaction costs, and faster execution speeds for the majority of standard trading activities. However, innovations from DEX aggregators such as Bebop and CoWSwap are progressively addressing these gaps. These platforms enhance user experience by optimizing routing and reducing slippage, making decentralized trading more attractive.

Additionally, Layer 2 solutions like Base have captured significant trading volume, while the Solana blockchain continues to establish itself as an alternative trading venue. This redistribution suggests that although Ethereum's native DEX activity has declined, traders remain interested in exploring cost-effective decentralized venues rather than completely exiting the DEX ecosystem.

This report is part of The Block's Data & Insights newsletter, which delves into the numbers driving some of the most compelling trends within the industry.

Disclaimer: The Block operates independently to provide news, research, and data regarding the cryptocurrency sector. As of November 2023, Foresight Ventures is a majority investor in The Block and has invested in several companies within the crypto space, including Bitget. The Block's commitment to delivering objective and timely information remains unchanged.

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