Decentralized tokens and exchanges see rising volume even though the markets are very dodgy right now. The recent China crackdown on crypto has put selling pressure on the entire market, and this is why the prices also took a hit. But still, DeFi and Dex are doing pretty well in terms of volume. It seems like investors have started to understand how important it is to take full advantage of dips and crashes.
The China effect
China’s recent ban has pushed the price to lower levels again. Bitcoin’s strong support at $41,000 stood strong and pushed the price of the coin back up above $43,000 again. The recent crackdown also resulted in two major Ethereum mining firms shutting down which also resulted in the price of the coin dropping. Even though the markets have recovered quite a bit it is nowhere close to what it was a few weeks back.
China has also been on their toes to discourage the use of DeFi and DeX as they are decentralized. As well all know they are not the type to let the power be with the people. The fact here is that even after all that DeX and DeFi have seen a surge in volume. Due to the huge regulatory crackdown happening investors are moving their funds from centralized exchanges to DeX which gives them control of their money. This is a primary reason for the rising volumes.
The rising volume of decentralized tokens and exchanges
DyDx and Uniswap are two exchanges that have recently seen huge growth. In fact, the founder of DyDx shared that their exchange has crossed Coinbase in 24 hours trading volume for the first time. Investors and traders in China fear losing out on their crypto funds which have made it incredibly obvious why they are moving to DeX’s. In fact, other decentralized protocols have seen a rising interest and usage recently.
We all know that DeFi is the future because it gives control to the people rather than the companies. And sooner or later it will be the primary way of investing in crypto.
What are your thoughts on the fact that Decentralized tokens and exchanges see rising volume? And do you think this is going to be the future of finance? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.