TechFlow news, on November 20, according to Ledger Insights, a latest research report from the Bank for International Settlements (BIS) shows that the DEX market has exhibited a clear trend toward specialization. Although retail investors account for 93% of liquidity providers (LPs), a small number of institutional participants supply 65–85% of market liquidity. These sophisticated players achieve an average daily net yield 3 basis points higher than retail investors, translating to an annualized return difference of 11.65%.
Data indicates that the average retail investor holds about $29,000, whereas professional investors hold as much as $3.7 million. The report focuses on Uniswap V3, finding its launch accelerated market specialization, with the share of experienced LPs rising from an initial 40–50% to 70–80% by the end of 2023. Professional investors tend to participate in large liquidity pools with daily trading volumes exceeding $10 million, while retail investors are primarily active in smaller pools with daily volumes below $100,000.
