Chainalysis Says the Crypto Exchange Market is Consolidating

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Over the year, the trading volume on large decentralized exchanges (DEXs) grew by 550%, while in the small platform segment, the figure fell, analysts from Chainalysis have noted in a recent report.

An even greater growth in the volume of transactions for the year was recorded in the sector of large derivatives exchanges – 686%.

The number of active crypto exchanges peaked at 845 in August 2020. During the year, their number was reduced to 672.

These trends indicate the consolidation of the exchange market, which is becoming more and more highly competitive, experts say. The keys to success on it are innovation and scale, they emphasized.

Since January 2019, the number of DEXs and OTC brokers has grown considerably, and the number of derivatives exchanges has also increased, while there are fewer centralized platforms.

The average transaction value on DEXs is over $26,000 versus about $12,400 on centralized exchanges. According to experts, this is due to the greater popularity of DeFi in developed countries with large crypto markets.