Decentralized Platform & DeFi is Formost-The Lesson Learnt After the SBF’s FTX Collapse

As the centralized crypto exchanges fume, the decentralized, DeFi protocols are gaining huge popularity. Data front the popular analytic platform Nansen suggests a huge jump in the DeFi protocols in the past seven days. Some have recorded a double growth as the FTX exchange collapsed, like the dYdX decentralized exchange.

In the times when the DeFi space has been witnessing a steep decline, dYdX registered a huge growth with a 99% increase in user volume and a 136% jump in transaction volume. Moreover, the native token DYDX also registered a magnificent rally of more than 75% jump at the moment. On the other hand, , a decentralized lender, also experienced a 70% jump in users and a 99% increase in transaction volume.

On the contrary, centralized exchanges have been witnessing huge outflows. Binance, the leader of the CEX, reported the largest net flow of nearly $1.44 billion in the past 7 days. Okex followed the leader to register a NetFlow of $1.24 billion, while the popular exchange FTX’s Netflow is reported at $900 million and Kraken’s at $586 million.

After the FTX collapse, there was a huge outflow of Bitcoin getting away from the exchanges. As per Glassnode Glassnode Glassnode is a crypto data and market intelligence platform that provides data, analytics, and research to help investors and researchers understand digital asset markets. The company was founded in 2018 and is headquartered in Zug, Switzerland. It specializes in on-chain and crypto-financial metrics for assets such as Bitcoin and Ethereum. It operates as a glassnode on-chain analytics and crypto analytics platform that works directly with data from blockchains. Key Features: Pioneering on-chain analysis by building metrics from data taken directly from blockchains. Development of a new generation of metrics to study investor behavior and market trends. More than 1,200 assets and over 7,500 metrics, covering on-chain, spot, and derivatives data. Access to data through an intuitive charting studio and an API for institutional workflows. Focuses on trustworthy and verifiable on-chain data to reduce misinformation and data gaps. Uses open finance principles based on transparent blockchain data. Research and analysis that are referenced by institutions, hedge funds, and digital asset market participants. [email protected] On-Chain , the BTC withdrawal of 72.9K BTC marked the 4th biggest level in recent years.

Collectively, the DeFi space which had faded away is speculated to gain momentum as the tripping of the centralized exchanges may have agonized the market participants. The significant outflows are no doubt pointing towards a lack of user confidence and trust in holding their funds on the centralized exchanges.

Hence, it is believed that the FTX collapse has brought the decentralized-DeFi space into the mainstream, where one can expect wider adoption and acceptance in the coming days.