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DeFi Winning Big on Memecoin Frenzy

Memecoin mania is driving massive swap volumes, pushing up DEX aggregator tokens.
Jack Inabinet Jack Inabinet Mar 14, 20241 min read
market analysis DeFi Winning Big on Memecoin Frenzy

A flurry of speculative trading activity on Ethereum and its L2s has increased swap volumes, benefiting the tokens behind the ecosystem’s DEX aggregators!

0x Protocol’s ZRX has been at the forefront of this volume-led rally, but the fundamentals suggest an overlooked contender should be capturing traders’ attention. Which DEX aggregator token could be on the brink of breaking out?

Last week, volumes through the 0x Protocol soared to $1.5B – a 3x increase from the start of February – and March volumes have already reached $2.5B, putting 0x Protocol on track to surpass its March 2023 peak in volumes spurred on by the US banking crisis.

Source: Token Terminal

Accompanying the surge in trading volumes has been a remarkable rise in the price of ZRX, with the token’s monstrous 255% climb over the past two weeks sending it to a fully diluted valuation (FDV) of over $1.2B!

Although the 0x Protocol is currently Ethereum’s most valuable DEX aggregator, competitor 1INCH surpasses it in terms of trading volumes, with 1INCH’s February volumes 4.5x that of 0x.

While 1INCH’s volume lead has declined slightly this month to just under double that of 0x, the former’s comparatively higher volumes suggest that it should be the one trading at the higher valuation.

The recent spike in 0x volumes has likely raised investor’s expectations for future growth, potentially explaining some of the discrepancies between its fundamentals and valuation, but should crypto truly be entering a bull market, we can expect a rising tide to lift all boats, increasing volumes through 1INCH and providing the token with its own growth momentum.

Jack Inabinet

Written by Jack Inabinet

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Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial apartment development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business and remains based out of the Seattle area.

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