Why Centralized Exchanges (CEXs) Are Losing Popularity to Decentralized Excha...
Centralized Finance (CeFi) is the fundamental model of the traditional financial ecosystem, which comprises stakeholders such as monetary oversight bodies, regulators and financial institutions. As such, all these stakeholders work in collaboration towards sustaining sound financial markets. Despite its value proposition in traditional finance, the CeFi model has come under constant criticism due to its […]
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Buying or selling cryptocurrencies usually starts with exchanges or, in other words, digital marketplaces where most crypto trading happens. For example, Binance, a leading centralized exchange (CEX), handles over $24.27 billion in daily volumes. Similarly, UniSwap is the world’s largest decentralized exchange (DEX) with over $7.25 billion in Total Value Locked (TVL). While centralized exchanges now hold market dominance, decentralized exchanges are providing strong competition with rising volumes. And, although both CEXs and DEXs facilitate crypto-transactions, they differ greatly in....
AMM-based decentralized exchanges are seeing unprecedented adoption, but are they the future of trading? Centralized exchanges play an important role in the cryptocurrency industry. While their decentralized exchange counterparts have been growing in popularity and usage since 2020, the overwhelming majority of crypto trading volume is still concentrated on centralized exchanges. The supremacy of CEXs can be clearly observed in the size and popularity of trading platforms like Binance and Coinbase, which are now so recognizable and mainstream that Coinbase has recently become the first....
Security remains a perennial concern for DeFi protocols, but DeFi will still inevitably “grow and flourish,” Bitfinex chief technology officer Paolo Ardoino believes. Despite the rise of decentralized finance (DeFi), cryptocurrency investors appear to be sticking to centralized exchanges (CEXs) over DeFi tools, according to a new report.Crypto investors are more comfortable holding their assets on CEXs because decentralized exchanges are still more vulnerable to the threat of hacks. This is according to a joint report by the blockchain data firm Chainalysis and Bitfinex exchange, issued on....
Orion Protocol recently launched its AMM solution, Orion Pool, powering multiple crypto-related activities from a single user interface. The platform has integrated leading swap pools, DEXs, and CEXs, constructing the first decentralized gateway to the entire cryptocurrency market. A New Age Of Decentralized Finance From One Interface With Bitcoin and other cryptocurrencies on the rise, the blockchain ecosystem is flooded with centralized and decentralized exchanges. As a result, users find it increasingly difficult to manage multiple wallets, monitor price movements, and execute orders....
From indictments against figures behind BitMEX to banks blocking transactions, and then Binance, some CEXs are under pressure. Is this an industry-wide phenomenon? Over the last 10 years, Bitcoin (BTC) has performed exceptionally well as a store of value and for speculative investment purposes. However, a lot of this can be attributed to its decentralized nature, which could have resulted in regulators and governments worldwide making attempts to shut it down long before it ever took off.Governments are evidently perturbed by the potential impact digital assets could have on national....