The central marketplace For the first time, Coinbase expects Uniswap, a decentralized platform, to overtake its market share in terms of volume. A DEXs breakthrough or the decline in CEXs instead?
DEXs seek revenge
We discuss regulation frequently, and it is true that a lot is happening in this area. The regulation of the cryptocurrency market is under way, whether in the United States with the adoption of more and more regulations by states and for the entire nation, or in the European Union with the infamous Mica legislation. The major centralized exchanges, such as Binance or Coinbase, are the first to comply.
Since decentralized exchanges are currently unregulated and challenging to alter in the current condition, many users choose to go ahead of legislation and transfer their cryptocurrency to unhosted wallets lawfully.
Even if it is extremely possible that states will examine the issue of DEXs like Uniswap or pancakeswap in the near future, it must be acknowledged that their laws will be considerably more challenging because, unlike Coinbase, there is not a legal entity responsible for all of their actions.
A problem that does not exist in the DEX world, where everyone is able to withdraw their cryptocurrencies at any time, is that centralized platforms are reminding investors that they are not in control of their cryptocurrencies in these circumstances as a result of the Celsius fall. moment.
Using DEXs inevitably leads to a number of other issues, such as hundreds of shitcoins, rug pulls, and forgetting your seed phrase. however, the user is in charge of his data and tokens.
To get back to the comparison between Coinbase and Uniswap, Clara Medalie tweets the three key causes of this change:
- Transaction costs on the Ethereum network are at their lowest point since 2020.
- Billion stablecoin exchanges are made possible by DEXs.
- The most liquid wBTC/stETH markets are provided by DEXs (which is important as lenders are liquidating in droves).
Remember that DEXs are still a very small portion of the market compared to other exchanges like Binance and FTX, though rules and time may turn this trend around.
