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Chainalysis report: Top decentralized exchanges grow by 550%

Chainalysis report

TL; DR Breakdown

  • Chainalysis report outlines how top decentralized exchanges have grown by 550%.
  • The report claims centralized exchanges are closing down.
  • Decentralized exchanges facilitated 5 million transactions in August.

Without a doubt, the cryptocurrency industry is presently undergoing massive bill runs, with coins hitting top figures. A typical example is Ethereum which just hit a new all-time high with another in the works. But while most people are focused on the coins, Chainalysis new report focuses on the exchange angle. According to the Chainalysis report, centralized exchanges are not as strong as they used to be. This is because decentralized exchanges have now outpaced them in terms of growth.

Chainalysis report suggests centralized exchanges shutdown

According to the recent Chainalysis report, the values of some selected top decentralized exchanges have topped above 550% over one year. With the report considering the growth between August 2020 to August 2021, Curve, PancakeSwap and Uniswap are the DEX’s contributing the most to the figure. Also, the report stresses that within the time frame, the number of decentralized exchanges in the sector has tripled considerably. This figure places them miles ahead of centralized crypto exchange platforms. The Chainalysis report also mentioned that centralized exchanges have been folding up as their decentralized counterparts enjoy massive patronages.

The report claims that after the number of centralized exchanges setting up shop across the world increased drastically since 2019, the number has continued to dwindle since then. To put it into perspective, the number of crypto exchanges went down to 672 from a high figure of 845, something that did not come as a shock to Chainalysis. However, the head of research, Kim Gauer, mentioned that the figure left much to wonder.

5 million transactions facilitated in August

The Chainalysis report claimed that the research team was already aware that crypto exchanges were declining but did not figure it was that drastic. According to Gauer, most big centralized exchanges were still doing well, with only the smaller ones finding it difficult to stay afloat in the sector. He also mentioned that the shutdowns might be because of mergers or acquisitions, a metric that they did not consider in their research.

The Chainalysis report also claims that the massive growths of the seven exchanges are also coming at a time that the DeFi sector is doing well. In its data, Chainalysis stressed that about $274 billion is locked up across the DeFi sector, with the top exchanges responsible for a massive chunk of the figures. Derivatives exchanges have also witnessed considerable growth even though they are a minor type of exchanges in the sector.

In August, decentralized exchange platforms carried out about 5 million transactions compared to the meager 265,000 transactions carried out by derivatives platforms. Derivatives exchanges are seeing massive inflow even though it is not that noticeable because of their size.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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