The Switch of Crypto Users from CeFi to DeFi Platform

DeFi or Decentralized Finance uses emerging technology to remove third parties from financial transactions and has completely decentralized. On the other hand, CeFi platforms are typically owned by a company and hold the custody of deposits and also are easy to use, but do not offer interest rates.

After the FTX collapse, crypto users are switching towards the deFi platforms. DeFi platforms have recorded the increase in the number of users over the recent week, as per the data collected by blockchain analytics platform, Nansen.

Martin Lee, an analyst at Nansen, stated that collected data shows crypto users are jumping into DeFi protocols in response to the market volatility over the past week. He stated that “There’s evidence of people prioritizing self-custody, at least for this moment.” 

Additionally the massive outflows of both Ether and stablecoins from different crypto exchanges in the recent week as potentially further evidence in people’s push to self-custody. Uniswap, another DEX, had the second largest volume of all crypto exchanges this week.

Uniswap founder, Hayden Adams stated on Nov. 14, that the DEX hit $1.1B in volume in a 24-hour period, second only to Binance and ahead of Coinbase.

Alex Svanevik, CEO, recently tweeted that most major exchanges have disclosed their reserve wallets, and said it would be great to see Coinbase on this list too.

Nansen made a curated list of well known Entities in its portfolio. It firstly added about the exchange holdings entities which have Binance, OKX,, KuCoin, Deribit, Bitfinex, Huobi, Bybit, and SwissBorg. 

While the well-known DeFi entities are Stargate, WOOFI, Perpetual Protocol, dYdX, GMX, and Drift Protocol V2.  And DAOs entities are BitDAO, Gnosis, Lido DAO, Uniswap, and AAVE.

Alex Svanevik also shared a research article by Nansen on FTX and Alameda.

DeFi Projects

MakerDAO, one of the largest DeFi protocols with $6.6B of total value locked (TVL), has increased addresses by a third in the last week. While the rest of the protocols also attracted massive jumps in users, with Aave, a lending protocol, notching a 70% increase, and Curve, a DEX, a 63% spike.

Top-5 DeFi TVL

According to the DefiLlama, a DeFi TVL aggregator

  • Maker DAO- 6.65 Billion $MKR
  • Lido- 5.82 Billion $LDO
  • Curve- 3.8 Billion $CRV
  • AAVE- 3.6 Billion $AAVE
  • Uniswap- 2.83 Billion $UNI

In a recent post by DefiLlama, there are now 11 CEXes tracked on the CEX Transparency Dashboard of DefiLlama.

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