Amidst recent uncertainties surrounding centralized exchange (CEX) platforms, Vietnam’s crypto community is undergoing a significant change in user sentiment, as more users show a preference for decentralized exchange (DEX) platforms.
This observation is highlighted in a recent crypto report by Kyros Ventures that delves into the state of the Web3 industry within the nation.
This phenomenon is propelled by a global surge in DEX adoption, indicated by an increase in the DEX to CEX ratio from 10% to 22% in the first half of the year.
Decentralized Exchanges (DEXes) enable direct cryptocurrency trading without intermediaries, focusing on security and user control.
Centralized Exchanges (CEXes) act as intermediaries for trading, offering convenience and liquidity but requiring trust in a central entity.
The decision between DEXes and CEXes depends on preferences for security and trading features.
According to the respondents to the report, their reasons for opting in for DEXes include protection against exchange bankruptcy, enabling users to have greater control over their assets; easy entry into the realm of decentralized finance (DeFi), allowing users to explore various DeFi products and opportunities; and convenience in investing in stablecoins on DEX platforms due to prevailing trends.
On the other hand, some users exhibited a hybrid approach, initially exploring DEX platforms for their benefits but later migrating to CEX platforms for higher liquidity, convenience, and reliable customer service offerings.
Why Vietnam DeFi investors are explorative
Kyros said that DeFi investors in Vietnam exhibit a higher level of openness to exploring different sectors within the cryptocurrency market.
One major reason behind this is that the DeFi sector acts as a gateway, introducing investors to a wide range of niches and opportunities beyond the traditional realm of cryptocurrencies.
Furthermore, it highlighted another shift in the country’s DeFi sector: in H1 2023, Ethereum secured the leading position at 57.9%, surpassing BNB Chain at 56.7%.
Subsequently, Arbitrum (33.8%), Polygon (33.5%), and Near (12.6%) trailed behind. Solana, once prominent, has witnessed a decline in popularity, while emerging Layer 2 solutions such as Arbitrum, Optimism, and zkSync Era are captivating users’ interest.