Centralized Exchanges Still Dominating Despite Predictions for Increased Usage in Decentralized Exchanges

02/28/2023 22:59 • Blockchain Briefs • 93 views

It is reported that many market observers predict that the use of decentralized exchanges will increase sharply after the collapse of FTX last year, but analysts say that many users’ experience provided by DEX is not as friendly as that of centralized exchanges. According to a report from Kaiko, a cryptocurrency company, the trading volume of Coinbase, the cryptocurrency exchange, has exceeded the popular decentralized trading platform Uniswap this year. Kaiko said that as of last Friday, the trading volume of Coinbase had exceeded $185 billion, almost twice that of Uniswap’s $93 billion. At some point in 2022, the trading volume of each exchange is almost equal. Conor Ryder, a research analyst at Kaiko, said that the call for a transition to DEX seemed “a bit premature” because the centralized exchange (CEX) still played a key role in attracting ordinary investors.

The trading volume of Coinbase exceeded Uniswap, which ran counter to the expectation of DEX surge

Analysis based on this information:

Many market observers predicted that the collapse of FTX last year would result in a sharp increase in the use of decentralized exchanges (DEX). However, according to analysts, the user experience provided by DEX is still not as friendly as that of centralized exchanges (CEX). A report from Kaiko, a cryptocurrency company, revealed that the trading volume of Coinbase, a CEX, has exceeded the popular DEX, Uniswap this year. The trading volume of Coinbase is nearly twice that of Uniswap; as of last Friday, the trading volume of Coinbase had exceeded $185 billion, while Uniswap had a trading volume of $93 billion. Conor Ryder, a research analyst at Kaiko, said that the call for a transition to DEX seemed “a bit premature” since CEX still plays a key role in attracting ordinary investors.

Despite the prediction that DEX would gain significant traction, the report shows that CEXs are still the preferred option for investors. The reasons for this can be attributed to the superior user experience provided by CEXs as well as their ability to attract ordinary investors. The report indicates that until the user experience of DEX improves, CEXs will continue to dominate the market.

The findings of this report are significant for the cryptocurrency industry as it highlights the key factors that investors consider when choosing a trading platform. The report also shows that while the market is constantly evolving, the industry is yet to witness a complete turnaround in favor of DEX. The pace of transition from CEX to DEX will depend on the continued efforts to improve user experience on the DEX platform.

The three keywords that can be used to summarize this report are decentralized exchanges, centralized exchanges, and trading volume. Despite predictions to the contrary, CEXs have maintained their dominance over DEXs. This report suggests that the volume of trading on CEXs plays a critical role in attracting ordinary investors, and until the user experience of DEXs improves, CEXs will continue to dominate. The cryptocurrency industry should pay attention to the changing market dynamics and continue to work to improve the user experience on DEXs.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/02/28/centralized-exchanges-still-dominating-despite-predictions-for-increased-usage-in-decentralized-exchanges/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.