Crypto Trading Volume on DEX Almost Doubled Throughout November
CEX such as Binance and Coinbase continued to experience an increase in trading volume by 24 percent to US$673 billion, compared to last October of US$543 billion, quoted from Theblock.
However, DEX experienced a substantial increase as trading volume doubled from US$34 billion to US$65 billion or 93 percent.
This rapid increase is due to many reasons. However, one of the biggest reasons is because DEX is safer to use. So, the chance that the FTX problem will reoccur is minimal.
This rapid increase is due to many reasons. However, one of the biggest reasons is because DEX is safer to use. So, the chance that the FTX problem will reoccur is minimal.
The FTX problem that uses the CEX system turns out to have many problems. For example, users cannot control their assets.
Precisely the crypto exchange can exercise full control. So, it's not surprising that Sam Bankman-Fried, CEO of FTX at that time, was able to transfer his users' assets to Alameda Research safely without being detected.
In addition to full control of personal funds. The DEX system itself provides two other advantages.
First, transparency. All transactions that occur on DEX will be recorded on the blockchain without the intervention of any party.
So, every existing transaction will be seen more clearly and transparently.
This event happens very often, especially when FTX starts to have problems. FTX as CEX can do this because existing assets are run in a black box, quoted from Blockchainmediaindonesia.
Withdrawal prevention is usually done if the exchange is experiencing liquidity problems or bankruptcy.
These two reasons make DEX the best alternative for traders who wish to transact in crypto.
Although there is still much to be improved. But, DEX offers good security. In the end, the trading volume of crypto on DEX also increased rapidly.
Post a Comment