Decentralized exchanges, or DEXs, are one of the hottest tools for the crypto asset class. Unlike a centralized exchange, DEXs allow users to trade cryptos entirely on the blockchain. There is no governing body holding anything in custody or creating rules, and there is a greater emphasis regarding on-chain security.
CoinMarketCap, a Binance-owned crypto value tracker and info site, just recently made a huge announcement. In partnership with the Uniswap (CCC:UNI-USD) DEX, users can swap tokens through the CoinMarketCap website.
With the new token swap feature, users can look at crypto values in real time on the website and can swap tokens that they own for others through Uniswap.
All together, this is a huge partnership. Uniswap is by far the largest DEX, and CoinMarketCap is by far the most popular crypto analytics site. The collaborative effort will do much to both bring CoinMarketCap users to the Uniswap platform, while also bringing more attention to DEX tokens as a means of investing.
Uniswap has generally performed quite well this year. The UNI token is up nearly 250% from the beginning of the year.
A reinvigorated interest in DEXs and DEX tokens, alongside the big news for Uniswap, is leading investors to seek out DEX tokens with high growth potential. Of all the DEX cryptos you could purchase, here are some of your best bets:
- Uniswap (CCC:UNI-USD)
- PancakeSwap (CCC:CAKE-USD)
- SushiSwap (CCC:SUSHI-USD)
DEX Cryptos to Buy: Uniswap (UNI-USD)
Uniswap is the crowned-ruler of DEXs. It’s all in the numbers: It has a market capitalization of nearly $10 billion and a daily trading volume of over $350 million. It has nearly $5.5 in total value locked, which is the total amount of liquidity at its expenditure, when amassed and converted to U.S. dollars. It also has the backing of Ethereum..
Uniswap has its top-dog status because it constantly innovates to solve problems and makes its DEX as simple to use as possible. This is evident by its third major overhaul, Uniswap 3.0, which launched on May 5. One major innovation by the development team is the new concentrated liquidity feature, which allows liquidity providers to set bounds under which their tokens can be exchanged. This prevents any sort of wild price fluctuation if a large transaction occurs elsewhere along the chain, a ripple effect which can cause LPs to lose money on other DEXs.
UNI gets the benefit also of today’s news. With the CoinMarketCap partnership taking effect today, a whole host of CoinMarketCap users will get exposure to the exchange, and many will likely begin using Uniswap thanks to the convenience of swapping through the website. UNI is one of the hottest cryptos to buy right now if you’re looking to get your feet wet with DEX tokens.
PancakeSwap is the Ethereum to Uniswap’s Bitcoin (CCC:BTC-USD). The younger sibling, PancakeSwap is the second largest DEX by market cap, with $2.41 billion to its name. However, PancakeSwap edges out Uniswap in its massive liquidity pool; there is nearly $7 billion in total value locked into PancakeSwap, meaning more and greater transactions can be had on the CAKE exchange.
Just like Uniswap, CAKE has seen its ups and downs. Beginning the year at less than $1, the token managed to balloon to an all-time high of over $44 dollars before shrinking in the crypto collapse of Q2. Now, it rests at $13.40, a still very impressive gain.
PancakeSwap differs in network from the larger Uniswap. Where Uniswap exists on the long-standing Ethereum blockchain, PancakeSwap operates on the smaller Binance Smart Chain. These leaves a lot to consider, seeing how BSC and the ETH chain have different scaling, different gas fees, and different token standards.
Analysts are quite bullish on the CAKE token. FXStreet recently forecast a potential 35% jump for CAKE if it can break from its 200-day moving average, which it stands on the verge of doing. As an exchange of large market cap, a different class of tokens, and a different set of rules to live by, PancakeSwap and Uniswap exist as a sort of Batman-Spiderman tandem. Each has different powers and a different universe, but they are fighting for the same thing. It’s for these reasons that CAKE is a solid crypto to buy to cash in on DEX tokens.
DEX Cryptos to Buy: SushiSwap (SUSHI-USD)
SushiSwap is stylistically quite different from both PancakeSwap and Uniswap. In fact, its very origins are like the crypto equivalent of a heist movie. The exchange was funded through vampire mining, in which the developers, alongside FTX CEO Sam Bankman-Fried, convinced Uniswap liquidity providers to join their upstart exchange.
The SushiSwap exchange operates on the same automated market maker model as the other two, but its upgrades are all community guided. SushiSwap has a unique feature which is common among some different token subsections, like those associated with DApp development. This feature is governance. See, users can stake their SUSHI for yield-farming rewards; farmers earn 0.05% of all swaps on the platform.
When one stakes SUSHI, they receive xSUSHI in addition to yield. Holding xSUSHI gives one voting power on different community efforts. xSUSHI holders decide on upgrades and other proposals, rather than developers. Ultimately through this relationship, farmers walk away with whatever yield they obtain and their governance tokens, and the platform gets the benefit of more liquidity for conducting swaps.
SUSHI is a smaller play than Uniswap or PancakeSwap. Its market cap is under $1 billion, and it has only $3 billion in total liquidity. But, it is quite clear that the SushiSwap DEX is taking its offerings in a different direction from UNI or CAKE. In addition to governance staking, the team is experimenting with DApp development with its Bento Box feature. It is this innovation that makes SUSHI an interesting, and quite promising, DEX crypto buy.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.