- Canto DEX sees 200% trading volume increase
- Canto is a cheap and fast network for building financial products
- Proposal to launch Contract Secured Revenue (CSR) may have driven trading activity
Trading activity on the largest decentralized exchange (DEX) on Canto, a new blockchain platform, experienced a significant increase of over 200% within the past 24 hours. This is due to traders investing in the latest layer 1 technology.
Canto, which utilizes the Ethereum Virtual Machine (EVM), is a fast and affordable network that allows developers to create financial products such as lending and borrowing on the blockchain. As of Wednesday, applications running on Canto had locked over $120 million worth of value. The Canto DEX represents over 9% of this ecosystem and utilizes smart contracts to connect traders and rewards liquidity providers with tokens.
Additionally, the Canto token saw a 30% increase in the past 24 hours, as reported by CoinGecko data, bucking the trend of a market-wide decline. The DEX processed over $63 million in trades in the past 24 hours, setting a new record high and significantly surpassing Monday's figures of $21 million. So far this month, the DEX has seen over $330 million in trading volumes.
One of the reasons for the increased trading activity is Canto DEX's mechanisms for preventing "rent-seeking behaviors" where developers create products that solely extract value without benefiting the overall Canto ecosystem.
The protocol is permanent, has no official interface, and cannot be upgraded, with no "ability to implement fees" according to its technical documents. The trading volumes surged as some developers proposed launching Canto's Contract Secured Revenue (CSR) on the main network.
CSR is a fee splitting model for the Canto network that allows smart contract developers to earn a percentage of the transaction fees paid to the network when users interact with their smart contracts. These fees are distributed in the form of non-fungible tokens (NFTs) to developers, who can trade, stake, or use them as collateral for loans.
This method helps incentivize developers to create products that attract users, resulting in higher revenues and usage of the Canto network, benefiting the CANTO token and its ecosystem. CSR is currently being tested on a private testnet. At press time, the CANTO token is trading at $0.31 according to CoinGecko.