One report New Chainalysis shows that the number of decentralized exchanges (DEXs) is growing faster than any other type of cryptocurrency exchange. However, data from Similar Web shows that centralized exchanges (CEXs) are still very popular, with Binance seeing 171 million visitors in October.
Chainalysis’ analysis was conducted by categorizing exchanges based on their business model, including DEX, CEX, over-the-counter (OTC) trading brokers, derivatives platforms and exchanges high risk transaction with minimal identity verification requirements (KYC).
According to the data, the number of DEXs rose more than 100% to around 205 from Q1 2019 to Q3 2021. The number of CEXs rose from around 100 to 120 before falling back into the 100 region within the bracket. back then.
The number of OTC brokers has also increased significantly, by around 50% to 150 by the third quarter of 2021. The number of derivatives exchanges rose slightly to around 125 in 2019 and has remained essentially unchanged, booming to around 150 in mid-2020, before falling below 100 in the third quarter of 2021.
The development of active cryptocurrency exchanges | Source: chain analysis
“Of course, the number of active exchanges in each category isn’t the only way to gauge the health of those categories. After all, not only are crypto companies trying to survive, they also need to grow their user base and trading volume to be successful, ”the report said.
“However, the number of small exchanges has decreased in all categories, which suggests that the exchange market no longer supports niche providers. So what do you have to do? Exchanges need to reach a mass audience or a small group of wholesalers to stay in business. “
The increase in the number of exchanges by business model and size. Source: chain analysis
Chainalysis stressed that the growing popularity of DEXs over the past two years coincided with the “explosive growth of the DeFi portfolio as a whole”.
Binance still dominates
Although the exchange has faced intense scrutiny and opposition from regulators around the world in recent months, the data shows that the Binance exchange is still outperforming its competitors.
follow data from Similar Web, compiled by Finbold, Binance had the most traffic of all exchanges with 171 million visitors in October. This corresponds to an increase of 12% compared to the previous month. Coinbase ranked second with 91 million unique visitors, up 31% from the previous month.
The third most popular exchange is PancakeSwap, a DEX operating on Binance Smart Chain (BSC), with 25 million visitors and an increase of 14% over the previous month. While Bybit is in fourth place with 24 million (-8% compared to September).
Coingecko data shows that Binance outperforms its competitors in terms of trading volume, reaching over $ 33.3 billion in the past 24 hours. That’s more than five times as much as Coinbase, which generated $ 6.6 billion in trading volume in the past 24 hours.
Yesterday (November 11), the Wall Street Journal reported that former Binance executives estimated the company’s value as a publicly traded company to be up to $ 300 billion. 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.
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