Friday, December 3

Decentralized exchanges grew faster than centralized ones! What do the figures tell us?


Among a range of many user interactions, crypto market platforms are gaining volume and influence. On the one hand, decentralized exchanges would have grown rapidly compared to centralized ones, without leaving out the relevance of the latter.

Accelerated growth

The evolution that cryptocurrency-related platforms have presented would have been exceptional in the last couple of years, according to data from Chainalysis. The observed growth came under the influence of participants in both large purchases and retail investors.

Considering the events of early 2021, digital asset exchange platforms would gain relevance by up to more than 100% in particular cases. This was the case with decentralized exchanges (DEX), which would have achieved an average growth of more than 200%.

User interactions increased with some continuity, to the point where traditional centralized exchanges (CEX) lagged behind. From their perspective, the registered increase reached 120%, while the percentage could not be maintained and returned to 100%.

The CEX currently maintain their space

Although the growth of DEXs formidably outpaced centralized exchanges, the latter have not disappeared. On the contrary, they retain an influence between the operations of the markets, and have also grown in the last season.

The truth is that its rate of strengthening has been somewhat overshadowed by the popularity of DeFi technologies, in terms of exchange platforms. However, this situation would not mean any major setback among centralized exchanges, which have also gained more attention.

Among the most notorious scenarios is the popularity of Binance, whose influence on the crypto world is indisputable. This platform has had the highest number of visitors compared to decentralized exchanges in recent months, according to data from Similar Web.

With more than 170 million visits in the last month, Binance continues to be above the competition.

In addition, its strength has led to the possibility of the firm going public in the coming years to be considered. This would at least be in its US division, and the year in mind is 2024.

The expansion of platforms

While DEX and CEX are compared to determine who dominates the markets, a pattern that would repeat itself in both is hasty expansion. As decentralized or centralized exchanges with greater reach emerge, the smaller ones are left out.

In Chainalysis they consider that exchanges “need to reach a mass audience or a small audience of large-scale traders, to continue operating.”



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