Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week.
The FTX collapse has created a sense of uncertainty among large and retail investors alike, who are not very sure whether they should keep their funds on centralized exchanges or not. The dilemma has led to a major uptick among DeFi protocols and decentralized exchanges.
DeFi protocols and decentralized exchange (DEX) platforms gained some momentum in the aftermath of the FTX implosion. A new report from Delphi Digital suggests DEX platforms gained 24% volume in the wake of the FTX collapse.
In other DeFi news, crypto scammers are actively using black market identities to avoid detection. DeFi protocol 1Inch is looking to optimize gas costs with its new v5 router.
The DeFi market like the rest of the crypto market is still recovering from the turmoil in the aftermath of the FTX collapse. Majority of the top 100 DeFi tokens traded in red for the second week barring a few.
DeFi platforms see profits amid FTX collapse and CEX exodus
A week after the fallout from the FTX and Alameda chaos, some on-chain data points are interesting to observe. Although record amounts of Bitcoin (BTC) and Ether (ETH) are leaving the exchanges, not all DApps and protocols have shown growth, mainly due to reliance on FTX and Alameda.
Combined with the migration away from centralized exchanges (CEXs), the volatile crypto market has users trading in record numbers. According to data from Token Terminal, the daily trading volume of perpetual exchanges reached $5 billion, which is the highest daily trading volume since the Terra (LUNA) and TerraUSD (UST) meltdown in May 2022.
FTX collapse followed by an uptick in stablecoin inflows and DEX activity
Delphi Digital used asset baskets to analyze performance between DEX and CEX tokens and found that when comparing the basket prices to BTC, the DEX basket gained 24% whereas the CEX basket is down 2%.
Generally, on-chain activity correlates to overall Bitcoin, Ether and altcoin market sentiment, with the current FTX chaos catalyzing historic exchange outflows and CEX tokens’ underperformance. A likely trend to emerge from the current chaos is a steady uptick in self-custodied cryptocurrencies and an increase in DEX use.
Crypto scammers are using black market identities to avoid detection: CertiK
Crypto scammers have been accessing a…
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