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The cryptocurrency market witnessed a significant shift in May 2023 as centralised exchanges experienced a remarkable decline in trading volume. Data from The Block reveals that volume reached its lowest point since October 2020, plummeting by a staggering 27%, or $440 billion, compared to the previous month.
What is the reason? How will this impact you, the investor?
Trust issues surrounding centralised exchanges have contributed significantly to the recent decline in trading volume. The collapse of FTX, along with the closures of other prominent firms like Celsius and Voyager, has intensified concerns.
Moreover, the withdrawal of large firms from centralised exchanges has played a role in the overall decline. In contrast, decentralised exchanges (DEXs) are gaining traction, offering enhanced security and control. The rise of meme-coin trading on DEXs has also impacted trading volumes. The future of centralised exchanges remains uncertain as the market navigates these shifting dynamics.
What is the reason? How will this impact you, the investor?
Trust issues surrounding centralised exchanges have contributed significantly to the recent decline in trading volume. The collapse of FTX, along with the closures of other prominent firms like Celsius and Voyager, has intensified concerns.
Moreover, the withdrawal of large firms from centralised exchanges has played a role in the overall decline. In contrast, decentralised exchanges (DEXs) are gaining traction, offering enhanced security and control. The rise of meme-coin trading on DEXs has also impacted trading volumes. The future of centralised exchanges remains uncertain as the market navigates these shifting dynamics.
