Top Decentralized Exchanges (DEXs) In 2024

As more and more funds flow out of centralized exchanges and into the safer storage solution of self-custody, both novice and seasoned investors will want to understand the best decentralized exchanges (DEXs) for use in 2024 and beyond.

‍

Before listing the best of the best, it’s important to understand what a DEX is, and the benefits of using one. 

What is a decentralized exchange?

A decentralized exchange (DEX) is a peer-to-peer (P2P) marketplace where users can trade cryptocurrencies directly with each other, without the need for a central authority. This is different from traditional, centralized exchanges (CEXs), where users deposit their funds with a third party who manages the trading and holds custody of the assets.

DEXs offer several key features, including but not limited to:

Decentralization: No single entity controls the platform, minimizing the risk of hacks, censorship, or manipulation.

Transparency: All transactions are recorded on a public blockchain, ensuring transparency and immutability.

Non-custodial: Users retain control over their private keys and crypto assets throughout the trading process.

Automated trading: Most DEXs use smart contracts to automate the execution of trades based on predefined rules.

Wide variety of assets: Many DEXs offer a wider range of cryptocurrencies and tokens compared to CEXs. 

‍

Several DEXs have launched their own tokens to provide utility & governance benefits to users. Examples include Uniswap’s UNI token, PanSakeswap’s CAKE, 1Inch’s 1INCH, SushiSwap’s SUSHI and Curve Finance’s CRV token. 

‍

These tokens are designed to reward loyal users in many ways, such as through:

‍

• Governance: some DEXs allow token holders to vote on proposals from the community about the future of the platform.
• Revenue sharing: Curve Finance shares a portion of its revenue with CRV holders.
• Staking: Many DEXs offer the ability to stake their native token to earn a passive income. 
• Other utilities include discounts on trading fees, access to exclusive promotions or liquidity pools and more. 

‍

Token spotlight

Source: CoinGecko

‍

Data from CoinGecko, a top data aggregator for crypto, shows that Uniswap’s UNI token is not only the top DEX token by market cap, but also a top 20 token overall, currently ranked at #23.

‍

DEX tokens, like other cryptos, can be ranked according to their current price, 24-hour trading volume and their market capitalization, which is calculated by multiplying the price by the current amount of tokens in circulation. 

‍

Here are the stats for 1inch’s INCH token, ranked at number 118:

‍

‍

What are the benefits of using a decentralized exchange?

There are multiple benefits to using DEXs:

• Increased security and censorship resistance: No single point of failure and less risk of hacks or government intervention.
• Greater control over your assets: You retain custody of your private keys and are not reliant on any third party.
• Access to a wider range of assets: Many DEXs offer tokens that are not available on CEXs. Note: most CEX’s charge a listing fee for any token they list which can be costly, especially for new projects. They may also want a percentage of the token allocation. This can make DEX’s more appealing to new projects who don’t have a lot of capital to begin with.
• Transparency and immutability: All transactions are recorded on a public blockchain, providing transparency and immutability.

However, DEXs also have some drawbacks:

• Lower liquidity: May be difficult to find buyers or sellers for less popular tokens or during periods of low trading volume.
• Higher transaction fees: Gas fees on some blockchains can be high, especially for complex transactions.
• Less user-friendly interface: Can be more complex to use compared to CEXs, especially for beginners.

How trading on a DEX typically works:

1. User connects their crypto wallet to the DEX.
2. User selects the cryptocurrency they want to buy and the cryptocurrency they want to sell.
3. User specifies the amount and trade type (e.g., market buy, limit order).
4. The DEX matches the user's order with another user's order on the platform.
5. The trade is executed automatically through a smart contract.
6. The traded cryptocurrencies are transferred directly between the users' wallets.

There are also data privacy considerations: DEXs do not hold any personal information, but tend to offer less customer support. They are not necessarily as safe, but offer privacy benefits. 

The best decentralized exchanges to use in 2024

‍

The top decentralized exchanges (DEXs) can vary depending on what you prioritize, like supported blockchains, trading fees, features, or user experience. But here are some of the most popular and highly-rated options overall:

Uniswap: Pioneer of the Automated Market Maker (AMM) model, known for its deep liquidity and wide token selection on Ethereum and other chains.

SushiSwap: A fork of Uniswap offering similar functionality with additional features like liquidity mining and governance tokens. SushiSwap v3: An upgrade to the popular SushiSwap DEX, including concentrated liquidity pools and new fee structures.

Curve: Specializes in stablecoin trading with tight spreads and low fees, ideal for traders focusing on yield optimization.

1inch: An aggregator that splits your order across multiple DEXs to find the best prices, particularly beneficial for smaller trades.

dYdX: Leading platform for derivatives trading with margin and perpetual contracts, catering to experienced traders.

Many DEXs are chain or Layer-specific, and we will see the number of these increase as new blockchains and Layer-2s for Ethereum go live, such as Aptos, SEI, SUI, Linea, BASE, and more.

New decentralized exchanges launching in 2024

While the crypto landscape is constantly evolving, predicting specific launches with absolute certainty can be tricky. However, based on industry trends and news, here are some exciting decentralized exchanges (DEXs) rumored or confirmed to be launching in 2024:

Chain-specific DEXs:

PancakeSwap: The dominant DEX on Binance Smart Chain, offering high liquidity and lower fees for DeFi activities.

Jupiter Exchange: Solana-based DEX known for its user-friendly interface and fast transaction speeds. Having reached an incredible $16+ billion in trading volume, Jupiter is soon to launch its $JUP token airdrop in late January 2024, rewarding active Solana ecosystem DeFi participants with a token that will likely give them governance rights over Jupiter Exchange going forward, and possibly unlock further utility such as trading fee discounts once released. 

Layer 2 Scaling Solutions:

• Optimism Odyssey: Expected launch in Q1 2024, bringing AMM and other DeFi functionalities to the Optimism layer 2 chain, known for its low fees and fast confirmation times.
• StarkNet DEXs: Multiple DEX projects are building on StarkNet, a layer 2 solution promising near-instant transactions and enhanced privacy. Keep an eye on StarkEx and zkX as potential contenders.

Emerging Blockchains:

• Sui DEXs: The innovative Sui blockchain, designed for object-oriented programming, is attracting several DEX projects like Aptos Labs' DEX and MoveX.
• Avalanche C-Chain DEXs: Avalanche's C-Chain, compatible with Ethereum Virtual Machine (EVM) contracts, will see new DEX launches like PangolinDEX, promising deeper liquidity and cross-chain features.

• Sei Network DEX: A high-performance order book DEX for cross-margin trading built on Cosmos SDK.

Remember, there is no single "best" DEX. Choose the one that aligns with your needs and experience level. Consider factors like:

• Supported blockchains and tokens: Do you mainly trade on Ethereum, Binance Smart Chain, or another chain?
• Trading fees: Compare gas fees, swap fees, and any other potential charges.
• Features and functionality: Do you need margin trading, derivatives, or specific liquidity pools?
• User experience: Choose a DEX with a clear interface and easy-to-use tools.

For more information, you can view Coingecko’s list of Top Decentralised Exchanges and sort them based on the data you are most interested in such as market cap, volume or the price movement of their tokens. 

‍