A brand new Chainalysis report has revealed that decentralized exchanges (DEX) are at present outgrowing their centralized counterparts as their numbers have spiked massively throughout the final yr.
Decentralized exchanges outgrow centralized exchanges
Based on the Chainalysis report, DEXs resembling Uniswap, Curve, and PancakeSwap noticed a progress of about 550% between August 2020 to 2021.
Apart from that, the report additionally ranked the decentralized exchanges above over-the-counter brokers, centralized exchanges, and “high-risk exchanges” due to their minimal Know Your Buyer.
A extra cursory take a look at the report from Chainalysis revealed that whereas DEXs have been on the rise, the full numbers of crypto exchanges have been dropping.
Per the report, as of 2019, there have been 845 crypto exchanges, nevertheless, the numbers have dropped to 672 as of this yr with lots of the smaller exchanges shutting down.
Kim Gauer, the top of the Chainalysis analysis group, highlighted that the smaller exchanges closing outlets have been principally those that couldn’t get sufficient liquidity. It ought to be added that the report didn’t reveal if a number of the closure of those exchanges was attributable to mergers and acquisitions.
DeFi increase DEXs
Nonetheless, on DEXs, Chainalysis identified that the expansion within the variety of these exchanges coincided with the expansion the house has seen.
In certainly one of our current reviews, we revealed that the full worth locked in decentralized finance has grown to over $250 billion. As of final yr, the house had lower than $10 billion in its TVL.
In one other of our reviews, DyDx, one of many main decentralized protocols executed over $3 billion value of transactions inside a day which was greater than what Coinbase, a number one centralized trade, was capable of do throughout the similar interval.
An fascinating revelation from the Chainalysis report was that progress amongst derivatives exchanges was fairly notable. It was acknowledged that the house noticed 265,000. transactions in August at a median of $79,000 per transaction.
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