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- DEXs have grown in popularity in tandem with the spectacular rise of the DeFi sector in general
- Based on their business models and technological infrastructure, the Chainalysis analysis classified exchanges into six categories
- As cryptocurrency usage expands, the majority of new users will obtain their first cryptocurrency through centralized exchanges, as these are often the simplest services for exchanging fiat cash for various forms of cryptocurrency
DEXs have grown in popularity in tandem with the spectacular rise of the DeFi sector in general. According to Chainalysis’ newest study, the number of decentralized exchanges has increased dramatically since 2019, but the number of active exchanges, whether centralized or decentralized, has decreased. According to Chainalysis, the number of active DEXs has increased dramatically during 2019, although the monthly number of active cryptocurrency exchanges has declined to 672 in August 2021 from a peak of 845 in August 2020.
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Based on their business models and technological infrastructure, the Chainalysis analysis classified exchanges into six categories, centralized exchanges, DEXs, high risk exchanges with low KYC requirements, OTC brokers, and derivatives exchanges.
Consequently, the blockchain analytics firm also claimed that the number of significant DEXs and the total value they have received have increased by far the most since August 2020. Between August 2020 and August 2021, the value received by large centralized exchanges, including derivatives, spot, fiat-to-crypto, and crypto-to-crypto, increased dramatically.
As cryptocurrency usage expands, the majority of new users will obtain their first cryptocurrency through centralized exchanges, as these are often the simplest services for exchanging fiat cash for various forms of cryptocurrency.
Another intriguing tendency is that the availability of a greater number of distinct crypto assets on a platform correlates with increased transaction volume. However, bitcoin and ether continue to be the most traded tokens on exchanges in general. The centralized exchanges that continue to develop tend to be those with the most diverse asset offerings, which maintains them appealing to the most active traders.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
