One can always draw different conclusions when looking at the cryptocurrency industry. Judging by the top assets noting gains this week, it is evident only a few exchanges matter. It is pertinent this situation changes sooner rather than later, as there needs to be more than one major exchange.
The Ongoing Binance Dominance
Finding trading platforms for cryptocurrencies has become a lot more straightforward in recent years. Whether it is a centralized or decentralized exchange, there are dozens of options to choose from. For the time being, it seems as if DEXes will not overtake CEXes in the near future. A year from today, that situation may look very different.
One thing to note is where people trade assets these days. It is no secret that Binance is by far the largest centralized exchange in the industry today. With a vast user base and hundreds of markets to explore, it simply notes the most trading volume. That also makes it a pertinent platform to trade assets that may gain value at any given time.
According to the chart above by CryptoDiffer, a lot of coins gaining value have Uniswap as their major exchange. Not entirely surprising, as this company tends to list all tokens eventually. There will be some exceptions, but most of the projects worth their salt – either temporarily or permanently – will be traded on Binance.
Interestingly enough, two other platforms are mentioned. Uniswap is not the biggest surprise. While it is the go-to decentralized trading platform, it seems to be overshadowed by other platforms lately. The name BitMax, on the other hand, may be a bit more surprising. Seeing more companies on such lists is crucial for the ongoing development of the broader industry.
The “Major Exchange” Conundrum
Looking beyond the currencies themselves, one has to wonder what constitutes a major exchange. Most of the tokens on the list above can be found on Uniswap as well. Does that not make this DEX a major exchange for those assets? The DEX falls short of Binance’s status, for no apparent reason. It all comes down to interpretation.
Keeping this information in mind for the CEX vs DEX discussion, it seems there is little to no competition. Centralized exchanges provide more convenience and require less knowledge to use. At the same time, they don’t let users control their own funds, which is a major drawback. At this rate, it will take a lot of time before both types of trading platforms can truly compete with one another.