The repercussions of the FTX crisis continue. Cryptocurrency says investors have recently turned to decentralized exchanges, according to the data provided. Volumes on decentralized exchanges have increased by almost 11 percent this month.
Investors turn to decentralized exchanges
Trading volumes on decentralized exchanges rose this month compared to other months, according to data provided by Bloomberg’s cryptocurrency data provider CryptoCompare. An increase of almost 11 percent is reported in November. As a result, it is reported that it reached 62 billion dollars. Blockchain analytics firm Nansen discussed crypto lending protocols such as Aave and Compound.
As we have reported as Kriptokoin.com; Nansen reports that DeFis are growing in users and transactions. However, it is reported that users who are worried about FTX withdraw their money from centralized exchanges.
Cryptocurrency investors turn to DeFis
Especially after the bankruptcy of the cryptocurrency exchange FTX, the Nansen data provided surprising results. According to the data, user growth on decentralized exchanges dYdX and Curve Finance is quite high. dYdX and Curve saw increases of 97 percent and 61 percent, respectively. It is stated that transactions on decentralized exchanges have increased more than twice. According to the data, increases are seen in cryptocurrency lending protocols such as Aave and Compund.
The number of users on Aave and Compund increased by 68 percent and 46 percent, respectively. It is reported that the number of transactions made has doubled. It is unclear exactly how long the transition to decentralized exchanges will take. Ethereum founder Vitalik Buterin continues to emphasize that DeFi is not user-friendly. Also, according to Buterin, DeFi is far from being scalable or accessible.
Can DeFi provide a solution?
According to data provided by Chainalysis, several hacking attacks took place in the year 2022. As a result, hackers stole more than $3 billion in cryptocurrencies from various DeFi protocols. As a result, it is seen that DeFi solutions relieve investors for now.
Mary-Catherine Lader, chief operations officer of Uniswap Labs, spoke about the FTX crisis. Lader stated the following on the subject:
It proved tangibly and painfully why people should have more control over their money.
Pascal Gauthier, CEO of hardware wallet address firm Ledger, is one of those who voiced his opinion. Gauthier said on the subject:
The message is very clear and precise. People are realizing that we need to get back to decentralization and self custody.
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