Cryptocurrency was born from the dual principles of decentralization and autonomy. Nonetheless, it would be hard to arrive at this conclusion if all you had to go on was the distribution of crypto trades across centralized and decentralized exchanges.
Decentralized exchanges (DEXs) still account for only a fraction of the total trading volume of cryptocurrencies. In fact, ten times more trading happens on centralized exchanges (CEXs) than it does on DEXs.
This is despite the fact that an important reality isn’t lost on most investors. CEXs represent a major compromise of the founding values of crypto. And with growing concerns surrounding the business practices of CEXs, many are calling for a return to crypto’s roots.
Could this potential shift become a new reality?
Clarence Lim, the Co-Founder and Head of Trading at Herring Global – a global crypto market-making firm specializing in altcoin liquidity profiles & strategies, was happy to lend valuable insights into this billion-dollar question.
