Since launching 0x protocol on the Ethereum mainnet we have received a flood of questions asking when the first 0x-based decentralized exchange will go live. This post will provide insight into the development activity we are observing today and how we expect the ecosystem to evolve over the next few years.

Note: this post represents my personal optimistic take on the future. It is not investment advice.

The next 12 months

The cryptocurrency exchange industry generates millions of dollars in fees each day and these numbers are growing. Even a small fraction of market share maps to a massive dollar value.

Monthly trading volumes on BTC/USD since 2010 in billions of dollars.

The Chinese ban on cryptocurrency trading has put a temporary stop to billions of dollars of daily trading volume. This activity will move to decentralized exchanges that are able to route around censorship and remain globally accessible.

Daily trading volumes on BTC/CNY in billions of yuan. Notice the gap decrease in September 2017 following the government shutdown of cryptocurrency exchanges.