Cryptocurrency exchanges moved more than $ 15 trillion in 2021, according to data supplied by the 2022 Digital Assets Outlook report by The Block Research. Of this amount, 14 billion correspond to centralized cryptocurrency exchange platforms (CEX). One trillion belongs to the decentralized platforms or DeFi (DEX). The figures provided in the aforementioned report show a growth of more than 600% for CEX and 850% for DEX, compared to the previous year. This strong growth highlights the importance of cryptocurrencies in transforming the economy and society.
Cryptocurrency Exchanges, 2021
Once again, the leading CEX is still Binance, with a transaction volume exceeding $ 9.5 trillion. In the field of DEX, the leader in the market is Uniswap, with a 75% share.
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CEX and cryptocurrencies
According to data provided by The Block Research, the future of centralized exchanges looks quite promising. CEXs are characterized by maintaining custody and private keys of their clients’ cryptocurrencies. In 2020, the volume traded within these platforms reached $ 1.8 trillion. The over 600% growth experienced in 2021 underscores the prominent role played by these companies in the crypto industry. By facilitating cryptocurrency trading and exchange operations, CEXs facilitate the entry of millions of people into this new digital financial ecosystem.
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The CEXs reached in the month of May of this year the highest figure in transaction volume, exceeding $ 2.23 trillion dollars. The date coincides with China’s decision to impose heavy restrictions on Bitcoin, which resulted in sharp falls for the cryptocurrency.
Monthly volume of operations with cryptocurrencies within the CEX. Fuente: The Block Research
The increasing use of these cryptocurrency exchange platforms by citizens around the world caused global regulators to set their sights on them. Especially on Binance, which was strongly contested by regulatory authorities from almost the entire planet, forcing it to close certain services.
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Japan, Singapore, Italy, the United Kingdom, Germany, Canada, Poland, the Netherlands, the Cayman Islands, Brazil and Chile, are some of the countries that warned about exchange practices. And, therefore, about the risks of transacting with cryptocurrencies from its services. Despite numerous warnings, Binance’s dominance grew exponentially in the past 12 months. Currently, Binance’s stake in CEX is 65.8%, with a daily volume of $ 17 billion.
Cryptocurrency exchange volume per exchange. Source: The Block Research
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The large volume of money moving through CEXs has motivated hackers to carry out attacks within these platforms. Earlier in the month, cryptocurrency exchange BitMart lost close to $ 195 million through a hack. Days later, AscendEX suffered a security breach that compromised its online wallet, losing about $ 77 million in crypto. However, Hack losses on DeFi exceeded those of CEX this year. According to the Slow Mist firm, hacks occurred in DeFi in 2021 they have left approximate losses of 7,000 million dollars.