the number of Decentralized Exchanges increasing over centralized: Chainalysis

A report of Chainalysis suggested that there is huge growth in the numbers of Decentralized Exchanges, while the number of Centralized exchanges is almost constant.

Defi is a concept to make the crypto ecosystem more decentralized and the first time Defi concept originated during a telegram chat between ETH developers and entrepreneurs in August 2018. 

Chainalysis did research and Investigation on the growth of the DeFi (decentralized finance). According to the Chainalysis report, the numbers of the DeFi Exchanges are increasing more rapidly than the Centralized exchanges.

According to the report of Chainalysis, the growth in the number of DeFi exchanges is around 100% between Q1 2019 and Q3 2021. And this number is around 205, as of June 2021 data. 

While, numbers of Centralized exchanges surged by 100 to 120 but in the same time frame it is again 100 in number, so we can say no growth in the number of Centralised exchanges. 

In the category of the ‘OTC brokers’, there is a surge of around 50% in the same time frame. This is also an indication of the perfect business for those, who don’t want to go with any CEX or DEX. 

The High risk-based exchange, derivatives trading exchange, plunged in numbers. However, there was a surge in the numbers after 2019. In 2020, there were 150 derivatives Exchanges. Now, this number is down and sits at 100. Can be seen in the graph below. 

the number of Decentralized Exchanges increasing over centralized: Chainalysis 1
Growth of active crypto exchanges: Chainalysis

“Of course, the number of active exchanges in each category isn’t the only way to judge the health of those categories. After all, cryptocurrency businesses aren’t simply trying to survive — they need to grow their userbases and transaction volumes to thrive, the report said”

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