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Did users switch to DEX after the FTX explosion?

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Changes in CEX and DEX data after FTX events.

Encrypted Data Analyst ahkek4

0x11, Foresight News

The main points of

CEX trading volume drops after FTX bankruptcy;

CEX dominates daily trading volume, losing most of its market share to Binance and Coinbase;

DEX is slow, Uniswap leads in volume, Pancakeswap leads in number of independent traders;

DEX trading volume is less than 10% compared to CEX (lots of room for growth?).

In the wake of the FTX bankruptcy, a lot of people are concerned about the trading performance of CEX and DEX: has anything changed significantly? Or no change at all? In this article, we will use data analysis from CoinGecko and Dune analytics to try to draw some conclusions.

CEX trading volume analysis

A centralized trading platform with high volume on CoinGecko is defined here as a header CEX.

首先，让我们看看 CEX 交易量在 FTX 事件之后如何变化。显然，从 2022 年 11 月 7 日开始，FTX 资不抵债后，来自头部 CEX 的交易量大幅下降，从日均 300 多亿美元的交易量下降到现在日均 100 亿美元的交易量。那么，谁会吞噬 FTX 大部分的市场份额？

Unsurprisingly, Binance and Coinbase took major market share after FTX collapsed. Before FTX, Binance's market share was around 50%; now it's as high as 80%. OKX and Coinbase also increased their market share by several percentage points, while other trading platforms remained unchanged.

DEX Transaction Volume Analysis

对于 DEX 交易量，我们从 Ethereum、Polygon、BSC、Optimism 和 Arbitrum 中的每个链选择头部 DEX 进行分析。有趣的是，随着 FTX 崩盘开始，我们看到 DEX 交易量在 11 月 6 日左右飙升。除此之外，其它交易日 DEX 的交易量表现相当普通，没有任何重大变化。

Uniswap from Ethereum has the majority of the market share, followed by Pancakeswap on BSC.

What if we put the trading volume of DEX and CEX side by side to make a comparison graph?

CEX VS DEX trading volume analysis

The chart above shows the 7-day moving average trading volume of CEX and DEX. The reason we use moving averages is to smooth out spikes and volatility in volume changes and smooth out the chart for a clearer visualization. After November 6, total trading volume remained low at more than $10 billion a day (down from an average of more than $30 billion). So will traders switch to DEX after FTX goes bust?

Clearly, in terms of market share, DEX transactions have increased. The increase, however, was not significant because it was only a small increase, but now it is slowly decreasing again. Are users still using CEX transactions?

DEX Independent User

上图显示了头部 DEX 上每日唯一交易者数量。仅从图表中我们就可以看到大多数交易者都在 Pancakeswap 上进行交易。但是，独立用户数在 FTX 事件之后没有明显变化。

The number of daily transactions in the header DEX is similar to the number of unique users, with no significant change.

conclusion

CEX accounts for the majority of trading volume, is preferred by most cryptocurrency traders or holders, is more regulated and offers a simpler UX/UI. CEX is also more liquid than DEX.

There is no doubt that DEX will grow, but it will still take longer for users to move from centralized to decentralized. For DEX to stand out, they need to improve their UX/UI and liquidity to get a better trading experience.