Decentralized exchange, Uniswap has overtaken exchanges like Coinbase to record the second-highest ETH trading volume on Nov 14. Data from crypto and DeFi analytics service Nansen showed that the Ethereum-based DEX registered a $1.1 billion volume in Ether (ETH) trading, while Coinbase saw $0.6 billion in trades. Binance takes the lead with a volume of $1.9 billion within the same period.
Uniswap Co-founder Hayden Adams shared the news on Nov 14, hinting at the possibility that decentralized exchanges (DEXs) are replacing centralized exchanges (CEXs). Nansen CEO Alex Svanevik corroborated the news, stating that Uniswap is the only DEX with an Ether trading volume above $1 billion.
Interestingly, all DEXs accounted for $31 billion of crypto trades in the previous week, according to Dune’s data. Uniswap, on its part, recorded a staggering volume of $20.3 billion within the same period.
With decentralised exchanges like Uniswap recording more volume on crypto trades, it strongly indicates that more people are trooping to DEXs following the FTX implosion. While DEXs allow users to execute trades and self-custody their tokens, CEXs custody users’ tokens, although with greater protection against unauthorised withdrawals. However, public confidence in CEXs has waned in light of the FTX saga.
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