• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M
The Rising and Dominant Role of DeFi

The Rising and Dominant Role of DeFi

user avatar

by Max Nevskyi

2 years ago


DeFi is a revolutionary force in the world of finance, offering transparency and financial accessibility through blockchain technology. One of the significant trends in DeFi is the increase in trading volume on decentralized exchanges (DEX) compared to centralized exchanges (CEX). Decentralized finance protocols eliminate intermediaries and enable peer-to-peer operations, lending, and other financial transactions, flipping the traditional financial system.

The advantages of decentralization in DeFi include transparency and security, which contribute to its rapid growth.

Contents:

Reduction in spot trading volume

Reduction in spot trading volume on CEX

In cryptocurrency trading, CEX platforms have traditionally been the most popular, but DeFi has made it possible for users to access alternative markets. With price stability in cryptocurrencies and a decrease in volatility to levels not seen since the beginning of the year, the total volume of spot and derivative trades on centralized exchanges decreased by 15.7% to $2.41 trillion in May, marking the second consecutive monthly decline in trading volume.

Trading volume on CEX

The reduction in spot trading volume on centralized exchanges can be attributed to several variables, including:

  • Control
  • Security

This is exactly what DEX offer, as they provide users with ownership of their funds and control over how they are used.

Consequences and future prospects for DeFi

The paradigm shift in the financial landscape shows that DEXs are becoming more dominant in terms of trading volume. It is expected that further development and expansion will occur as more users become aware of the benefits of DeFi.

However, to facilitate widespread adoption of decentralized banking and its integration with traditional financial systems, several obstacles need to be overcome:

Title Description
Scalability Technical limitations need to be overcome to ensure the scalability of decentralized banking.
User Experience It is important to create a convenient and intuitive user interface for utilizing decentralized financial services.
Regulatory Issues The development of appropriate legal and regulatory frameworks is required to integrate decentralized banking with traditional financial systems.

 

Conclusion

The increasing relevance of decentralized finance is evident in the reduction of spot trading volume on centralized exchanges and the growing usage of decentralized exchanges. A significant portion of trading volume has shifted from CEX to DeFi due to the advantages it offers in terms of control, security, and innovation.

If the DeFi ecosystem continues to evolve and find solutions to challenges, it may have the potential to revolutionize the financial sector, offering an alternative that is more inclusive and efficient than existing financial institutions.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other articles

Doodles UP — A Comprehensive Overview of the DOOD Token, DreamNet, and the Doodles Ecosystem

chest

An analysis of the Doodles UP project: its origins, the launch of the DOOD token, tokenomics structure, the DreamNet protocol, and DAO governance via the Inkubator. Everything about Doodles’ transformation into a Web3 media platform.

user avatarMax Nevskyi

Moon Cards Game: Telegram-Based Trading Card Game with Memecoins and NFTs

chest

Moon Cards is a Telegram card game where card power depends on memecoins. Collect, battle, and trade NFTs in a Web3 ecosystem by GAMEE and Animoca.

user avatarElena Ryabokon

Pett.ai — virtual pet game with tokens and NFTs on Telegram

chest

Virtual pets, $AIP token, mini-games, and NFTs in the Pett.ai Telegram bot. Built on the Base blockchain and offering a gamified Web3 experience.

user avatarMax Nevskyi

Tokenizing the Future: An Overview of the Innovative Capital B Platform

chest

Modern finance is being transformed by digital technologies. The Blockchain Group's Capital B blockchain project combines the benefits of decentralization with traditional investment tools.

user avatarMax Nevskyi

Tez Tank – A Gaming Project on the Tezos Blockchain with a Telegram Bot

chest

A detailed overview of the Tez Tank project, its Tezos-based architecture, gameplay via @TezTankBot, tokenomics, technical integration, and development prospects within the Tezos ecosystem.

user avatarMax Nevskyi

Questflow is an innovative platform for automating tasks with artificial intelligence

chest

In the context of digital transformation, it is critical for businesses to automate routine operations. Questflow provides a powerful no-code AI-based solution that allows you to create complex workflows without programming.

user avatarMax Nevskyi

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.