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.
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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