TL;DR
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UniSwap just surpassed Coinbase in trading volume for the fourth consecutive month.
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The people who typically use DEXs are slightly more sophisticated crypto investors than those who trade on a CEX like Coinbase.
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In other words, the only remaining investors in the crypto space are sophisticated ones; or people are starting to realize that holding your crypto on a CEX is dangerous and learning how to use a DEX instead.
Full story
UniSwap just surpassed Coinbase in trading volume for the fourth consecutive month.
Does that sentence make you all dizzy?
(If not, you can at the end of this article).
Here’s why this is a big deal:
Uniswap is the biggest’decentralized exchange(DEX) in the world.
A DEX is a place to buy/trade/sell crypto, which is not owned or controlled by any individual or group.
The computers running DEXs are often scattered around the world and owned/operated by hundreds, if not thousands, of different individuals.
Making DEXs very difficult (if not impossible) to exit.
There is no central computer system that can be shut down, nor is there a controlling entity that can be forced to ‘press the kill switch’ and take the exchange offline.
Coinbase, on the other hand, is a ‘centralized exchange’ (CEX).
It can shut down or fail for many other reasons.
Here’s why this is a big deal:
The people who typically use DEXs are slightly more sophisticated crypto investors than those who trade on a CEX like Coinbase.
BUT, when you use a DEX you are in control of your crypto and can store it yourself – without the fear of waking up one day and the bank is out of money…
So the fact that UniSwap has surpassed Coinbase in trading volume for four straight months suggests 1 of 2 things:
In other words, the only remaining investors in the crypto space are sophisticated ones; or people are starting to realize that holding your crypto on a CEX is dangerous and are learning how to use a DEX instead.
Or maybe it’s a bit of both.
Happy Friday!