The decentralized trading platforms of Uniswap (UNI), dYdX (DYDX) and Curve (CRV) have experienced double-digit gains in daily trade volume as a result of the FTX contagion claiming another victim, BlockFi.
The latter filed for bankruptcy early Monday, November 28th and has kickstarted another massive migration of traders and their digital assets away from centralized platforms in fear that they, too, could collapse soon.
Uniswap, dYdX and Curve Trade Volume Up 42%, 14% and 29%
Data from Coinmarketcap reveals that the decentralized trading platforms of Uniswap (UNI), dYdX (DYDX) and Curve (CRV) have experienced tremendous growth in the 24-hour trade volume of 42%, 14% and 29%, respectively.
Other decentralized exchanges that have experienced growth in daily trade volume due to the FTX contagion and BlockFi filing for bankruptcy include Dodo (12%), ApolloX DEX (5.75%), Uniswap V3 on Polygon (19.65%) and Uniswap V3 on Arbitrum (23.15%).
Traders Opting for Decentralized Exchanges Could Lead to their Respective Tokens Gaining Value in the Markets
To note is that each of these decentralized exchanges has a token with a purpose within its ecosystem. Consequently, the rush by traders to decentralized exchanges could cause a rise in token prices as usage increases.
Further checking Coinmarketcap.com, it can be revealed that the tokens belonging to Unsiwap, Curve, dYdX and DODO have been experiencing notable gains in the last day and last week, as highlighted in the screenshot below courtesy of the tracking website.
DEX Tokens Could Continue to Thrive Until Trust Towards CEXs is Restored
The gains exhibited by the decentralized exchange tokens highlighted above might continue to be the norm for the next few weeks as the FTX situation unravels. Furthermore, crypto traders and investors are now more reluctant to trade on centralized exchanges lest they collapse and go down with their funds stored within them.
Therefore, it can be concluded that DEXs will continue being popular with traders and investors until trust in centralized platforms is restored, perhaps through the release of proof-of-reserves and an easing of the bear market vibes. Consequently, the decentralized exchange tokens could continue to thrive until then.
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.