Recurring market commentary on what's happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.

Market commentary

Following the further tightening of regulations in China and the subsequent exodus of users and capital to other exchanges, I thought it would be useful to create a chart. Included are both larger exchanges that have an exchange token and decentralized exchanges.

Comparison of exchange tokens / Chart: Tradingview

On the right side of the chart, you can see the percentage change since September 8 (at which time there were early signs of further regulatory tightening). The series follows the labels at the top of the chart.

Decentralized exchanges profit from China ban

In the following ranking, the exchanges with the largest losses are listed first:

Huobi
OKEx
FTX
Binance
Bitfinex
Sushi Exchange
Uniswap
DYDX

In my opinion, the main reasons for the price drop were the following:

Stricter KYC/AML guidelines required
Leverage restrictions/limitations
Crypto trading becoming illegal in China

It is no wonder that decentralized exchanges have benefited from these changes. DYDX is the clear winner as they offer leveraged derivatives (perpetual futures). Only time will tell if these quick gains are sustainable. I will be following the CEX (centralized exchanges) and DEX (decentralized exchanges) trading volume numbers very closely.

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