Key Points

  • Decentralized derivatives exchanges are seeing an increase in traffic as regulators continue cracking down on centralized exchanges
  • On June 27, the DEX to CEX futures trading volume ratio hits a new ATH. 

On June 27, the DEX to CEX futures trading volume ratio recorded a new all-time high though DEXs still have fewer futures trading volumes. These developments show growing discontent in the centralized crypto markets like Binance and Coinbase as regulators go harder after them.

Decentralized Exchanges (DEXs) keep getting more attention

Decentralized derivatives exchanges attracted much attention recently as regulators are going after centralized counterparts harder. The US SEC, for instance, is charging both Binance and Coinbase, while Binance has been asked to stop operating in several countries recently.

Amid this, the DEX to CEX futures ratio reached a new ATH. However, DEXs still account for a small portion of futures trading volume. However, it shows a growing trend of investors turning to decentralized platforms as regulators do not have much oversight over them.

This development comes at a time when more attention from investors is heading to the Decentralized Finance sector. On June 26, Fintech Express reported on an analysis of the DeFi markets showing a 15% spike in market capitalization due to the destabilization of the centralized options due to regulatory uncertainties.

A shift to the decentralized finance sector will continue as regulators continue going after centralized protocols. However, nothing is promised as many factors influence the crypto market and thus may vary greatly from time to time. Do your research before engaging in any crypto activity.

Keep watching Fintech Express for more updates on crypto and other fintech-related developments.