https://images.hive.blog/DQmeYMW9yBamFHeartTjQuoBtFWo2JJ8N9yKcquMm3QVVxC/Untitled%20design%20-%202023-07-24T095529.424.jpg 
# Can Decentralised Exchanges fill in the void of centralised exchanges?
The battle for exchange dominance is on with the [Securities and Exchange Commission (SEC)](https://leofinance.io/@leoglossary/leoglossary-securities-and-exchange-commission-sec) moving in to drive the sector into a wall street style trading system to enhance oversight and compliance with financial management and governance. Most of today's action is directly linked to the FTX collapse which saw billions of dollars wiped from the sector. 

As we learn more about the FTX debacle we learn that the [Centralized Exchange (CEX)](https://leofinance.io/@leoglossary/leoglossary-centralized-exchange-cex) was held together with nothing more than duct tape and zip ties. The ramifications have been wide spread and the market has since yet to recover seeing wide spread focusing of global regulators in an attempt to over hall the  [Crypto currency](https://leofinance.io/@leoglossary/cryptocurrency) market. 

So here we sit in a point of instability and market fear although unlike typical fear this period is a more wait and see approach just incase there are reform measures that see some digital currencies struck out of circulation. Although unlikely as many of the changes seem to be impacting the way projects launch and undertake their [Initial Coin Offerings (ICOc)]( https://leofinance.io/@leoglossary/leoglossary-initial-coin-offering-ico). While Centralised exchanges have been the focus point regulators haven’t taken much of an interest in Decentralised Exchanges and it was anticipated that the market would shift to DEX’s.
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# DEX Use Stagnant 
Many people anticipated an explosion in the use of deecntralised exchanges that operate on a peer-to-peer system overseen by a smart contract with no middle man or intermediary unlike centralised exchanges which are profit driven. However, [Monthly data](https://defillama.com/dexs) indicates that users are also hesitant to utilise Decentralised exchanges. 

Although the overall monthly data doesn’t look to bad in comparison to the 12 months prior we haven’t seen a shift from centralised to decentralised as initially thought and this can only be attributed to the fact people are waiting. 

It also puts pressure on projects that offer decentralised financial services to rethink they way they operate and benefit their user bases as decentralised financial services instead of creating profit for the company in most instances redistribute most the profits to those who use them. 

DEX’s have only been able to achieve USD1.5Billion in volume while Binance still continues to dominate the exchange world despite sustaining heavy hits by global regulators with a 24 hour volume of [USD4.5 Billion]( https://coinmarketcap.com/rankings/exchanges/)

 https://images.hive.blog/DQmZRifNWmUpjU1vyU44JziMZjhqkwmHgNBGDgnA6j2JLV2/Screenshot%202023-07-24%20104926.png  
[image source](https://defillama.com/dexs) 
# User Growth in DEX's 

Despite low turnover of funds there does appear to be [growth in DEX users]( https://www.binance.com/en-AU/feed/post/592062) as many do begin to lose faith in the current Centralised Exchange environment and is seeing more wallets connect to DEX’s. However, the complex nature of Decentralised Exchanges is also providing a barrier for many investors and the requirements for multiple wallets, key phrases and tracking makes the entire experience not so user friendly. 

Although things have progressed a lot more since Crypto’s first inception many are still at a loss when it comes to De-Fi and prefer the ease of use of Centralised exchanges, which is why we can guess that global regulators are not focussed on Decentralised Exchanges currently as the brunt of trades are done centralised. 
 https://images.hive.blog/DQmf6qGVJjJsvPKbMxgvCGBjmjNgWzXzJromsJ7XzEzkSGs/Untitled%20design%20-%202023-07-24T110000.468.jpg 
# Ethereum Remains Dominant 
Throughout all the data sets we can see the Ethereum continues to lead the way with most transactions and uses with it’s Decentralised Finance protocol Lido taking top spot and seeing the most traffic. Ethereum has always continued to remain in a well heeled place unable to be dislodged by it’s competitors. 

As we move forward into the new realm of Crypto it will be interesting to see what comes of all the action and if the bull market is held off until next year which is being tipped. However, court cases can be lengthy and time consuming for all involved and there are always the option to appeal decisions which can add to time frames. 

So while many wait in hope that this will be all over soon and things will get back to normal there is simply no real way of really knowing what the future will hold or when we will see a bull market. But the bigger question remains, can potential investors strum up the patience and wait for this to be all over or will something give causing a spike in investment? 

What are your thoughts on what will happen next? Will the be calm until next year or will people rush in sooner?

*images sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.*


Posted Using [LeoFinance Alpha](https://leofinance.io/@melbourneswest/can-decentralised-exchanges-fill-in-the-void-of-centralised-exchanges)