Decentralized Exchange Fundamental Analysis and Relative Value Comparison

The top seven decentralized exchanges (DEXs) sold off similar amounts this year despite stark differences in their underlying trading volume, total value locked (TVL), users, revenue, and capital efficiency. At first glance these metrics make some protocols look more attractive at the surface than they appear when looking into the underlying drivers behind the numbers. Underlying value accrual back to tokenholders differs wildly across the protocols. SNX is a particularly attractive potential investment opportunity given their valuations versus the competition and growth trajectory. dYdX will be a protocol to watch as metrics continue to improve, but token inflation and execution moving to Cosmos are real risks. SUSHI is undervalued by every metric versus peers but off-chain issues and growth concerns make this protocol more of a value trap than cigar butt type investment.

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