A new report from Chainalysis shows that the number of decentralized exchanges (DEXs) is growing faster than any other type of cryptocurrency exchange. But similar web data shows that centralized exchanges are far from unpopular, as Binance had 171 million visitors in October.
Chainalysis released a report on crypto exchanges on November 11th and made an analysis by breaking down the exchanges by their business model, including DEX, CEX, broker over the counter (OTC) markets, derivatives platforms and high risk exchanges with yours Minimum knowledge of customer requirements (KYC).
According to the data, the number of DEXs rose by more than 100% to around 205 from Q1 2019 to Q3 2021 in June of this year. In the meantime, the CEX number temporarily rose from around 100 to 120 before returning to the 100 region fell back.
The number of OTC brokers also increased significantly, rising by around 50% to 150 by the third quarter of 2021, rose to around 150 in mid-2020 before falling below 100 in the third quarter of 2021.
“Of course, the number of active exchanges in each category isn’t the only way to gauge the health of those categories. After all, crypto companies are not just trying to survive – they need to grow their user base and trading volume to be successful, ”the report said.
However, the number of small exchanges has decreased across all categories, suggesting that the exchange market is no longer able to support the right players. Lesson? Exchanges need to reach a mass audience or a small audience of wholesalers to stay in business.
– Distribution (@chainalysis) November 10, 2021
Chainalysis points out that the growing popularity of DEXs over the past two years coincides with the “explosive growth of the DeFi portfolio as a whole”. The company highlights that the total value of the DEX rose from around $ 10 billion in July 2020 to a high of $ 368 million in May 2021, an increase of about 3579%.
Binance is still the top dog
Despite the intense scrutiny and opposition from regulators around the world in recent months, the data shows that the Binance centralized exchange is still outperforming its competitors.
According to Similar Web data compiled by Finbold, Binance had the most web traffic of all crypto exchanges in October, with a total of 171 million visitors. This corresponds to an increase of 12% compared to the previous month. Coinbase ranked second with 91 million unique visitors last month and a 31% increase in traffic over the previous month.
The third most popular exchange is PancakeSwap, a DEX operating on Binance Smart Chain, with 25 million visitors and an increase of 14% over last month. While Bybit is in fourth place with 24 million (-8% compared to September).
Coingecko data shows Binance outperforms its competitors in terms of volume, with the platform hitting over $ 33.3 billion in the past 24 hours. That’s more than five times the total number of runner-up Coinbase, which generated 24 volumes valued at $ 6.6 billion.
Related: Binance is spending $ 115 million in France to develop a European crypto ecosystem
On Thursday, the Wall Street Journal reported that former Binance executives estimated the company could be worth up to $ 300 billion as a publicly traded company. It is unclear when or how Binance will go public as it does not have an official headquarters. However, CEO Changpeng Zhao said in September that Binance’s U.S. subsidiary is considering an initial public offering (IPO) in 2024.