Centralized Exchanges Promote the Proliferation of Digital Currencies
Date: 2024-06-25 Author: Oliver Abernathy Categories: BUSINESS
Binance CEO Richard Teng believes that the cryptocurrency market is entering a new phase of development. The recent launch of Bitcoin spot crypto ETFs was an important development not only for the virtual currency market, but also for Wall Street, where proven assets are traditionally preferred.
X10 Founder's Opinion
Ruslan Fakhrutdinov, founder of the X10 platform, argues that we are witnessing the process of global adoption of digital currencies. The increase in the number of users of Bitcoin exchanges contributes to the expansion of the digital assets market, the expert emphasizes.
The collapse of the FTX exchange in November 2022 undermined the attractiveness of the crypto market. However, the industry quickly recovered, and investors returned to centralized exchanges (CEX). This indicates renewed confidence in cryptocurrencies and their infrastructure.
User Growth Forecast
In the medium term, the number of Bitcoin exchange users could grow by 100 million. Centralized exchanges continue to lead the crypto space in terms of trading volume, but the decentralized finance (DeFi) market cannot be ignored.
The average daily turnover of tokens on DeFi platforms is $3.56 billion. At the same time, the Binance exchange processes transactions worth more than $15.1 billion in 24 hours. This demonstrates the significant superiority of centralized exchanges in terms of trading volume, despite the rise in popularity of DeFi.
Centralized exchanges play a key role in the proliferation of digital currencies. Their ability to quickly recover from crises and attract new users underscores their importance in the crypto industry. At the same time, the growing DeFi market provides additional opportunities and highlights the diversity of financial instruments in the era of digital currencies.
