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[stompix]

Hihi, this is gold!!!

Just a week ago we had a topic:
DEX increase volumes, CEX reduce

And then out of the blue, the volume is dropping again and most likely will go back to pre defihype levels in a month and then be forgotten as the new thing pops up.
I don't know why anybody would be amazed by this, other than playing with shitty tokens you still need the link to other blockchains that matters, and you need real exchanges to cash out and use the earning. No shop is accepting those tokens, for 99% of the stuff out there you need fiat.

And when it comes to actually trading there, when a lot of those tokens have flopped and left their customers penniless, when there is no defined future in which these can really be usable at a macro scale worldwide, it will become clear that DEXs where just part of a failed dream that came too soon with a wrong base.

And judging by these data, how rapidly liquidity and trading volumes are falling there, this tells us that people are not at all interested in all this technology with decentralization, owning their keys, no kyc, no market maker, no orderbooks with orders , protection against price spikes and other decentralized chips. They only care about the benefit.

And should anyone be surprised by this?
I would be willing to bet that if we do a polygraph test more than 99% of the people using crypto will have to admit that the most important thing is profit and they don't care a bit about the rest, and it's pretty normal, decentralization is not buying you a new car, some fantasy token might.

[Yamifoud]

And should anyone be surprised by this?
I would be willing to bet that if we do a polygraph test more than 99% of the people using crypto will have to admit that the most important thing is profit and they don't care a bit about the rest, and it's pretty normal, decentralization is not buying you a new car, some fantasy token might.

Indeed, profit is what they after why they come and risk in the crypto world that even they don't have assurance but then, they are still willing to gamble here for they think about easy money, huge market gains. And that 1% left could be you (and me) and some of the common traders who think that DEXes has nearly become obsolete as CExes moving forward.

Well, I don't think also that people care much for anonymity that DEXes may have but instead, they are willing to lose it just for money. That is very influential...

[bitgolden]

Since the beginning times of DEX, I am the one who never felt any differences of DEX from conventional crypto exchanges. I mean I am using both in same manner and the risk of losing my capital is the same if I leave my capital in exchange addy itself (for instance trading). Like someone mentioned here, only P2P trading made myself also to feel and enjoy the benefits of decentralized way of trading.

DEXs may lose its glamour when smart contract things are getting outdated. Without dapps, we cannot be having those dex and I'm not seeing most smart contract coins will be sustaining along with bitcoin. Like ICO, IEO and recent defi, dapps may not sustain or at least how they did significant levels in trading volumes in the recent past.

[beerlover]

Nobody "needs" dex's, they are totally useless in the sense that you do not need them to stay alive for example, they are not water and they are not bread, but that is not how you approach to any new invention. Everything that is created creates its own need as well, hence why I believe it is quite important that we give the space dex deserves to dex in order for it to prosper and be its own thing, however I believe it is not going to be anything substantial and won't grow to be too big.

I understand that it is hyped right now and people are using it and there is billions of dollars involved but that is something that won't be too long and until it is few months or even a year we won't know how long this will go on. At the end of the day only time will tell how much dex's are "needed" by the people that uses it.

[Gibreil]

Actually, as a bounty hunter I am always admire the dex since from the start. Almost all of my bounty payments were settled first in bounty which I exchanged them into bitcoin or ethereum. I really appreciate the existence of decentralised exchange specially that new tokens are listed there. It is useless to others because they want to have some security with regards to their capital or investment. But when you think that the token is capable of rising up, buying at dex is much better and you will gain more profits because price in dex are undervalued.

[wxa7115]

It's kinda weird since I read another thread saying that DEX is growing in volume compared to CEX in Q3 according to some reports by Coingecko (if my memory serves me right). I guess it depends on how you look at the data, there will always be a twist on the conclusion even if we're looking at the same thing.

If you run a moving average of DEX volume throughout Q3, or draw a linear regression for the period, it was clearly trending upwards. And rather strongly too. It's just that activity peaked towards the end of Q3 and then dropped off really abruptly.

Old timers expected this. I certainly did. Volume follows hype. When the Defi hype died, so did the volume.

I think the same however I just hope this is not a change in the trend we are seeing of more people using DEXs, it will be a shame that after this is over people decide to abandon DEXs and go back to CEXs, I know that the volume there is many times larger than whatever you can find in a DEX but it is also true that CEXs are getting more and more intrusive by the day on the data they ask from their customers and this is an opportunity for DEXs.

After all if they are truly decentralized then they will never have to ask for this kind of information and people will begin to choose to go there not only by the hype but also by the distinct advantages they offer over CEXs.

[shoreno]

I just hope this is not a change in the trend we are seeing of more people using DEXs, it will be a shame that after this is over people decide to abandon DEXs and go back to CEXs, I know that the volume there is many times larger than whatever you can find in a DEX but it is also true that CEXs are getting more and more intrusive by the day on the data they ask from their customers and this is an opportunity for DEXs.

After all if they are truly decentralized then they will never have to ask for this kind of information and people will begin to choose to go there not only by the hype but also by the distinct advantages they offer over CEXs.

theres always a demand for dexe's because they offer something that you cant find in the cex'es field but the trend of defi boosted the use of the dexe's , isnt that great ?

 i know that the boost was temporary and its expected that when the defi era were over the volume of the dex can also go normalise but thats fine atleast dex experience to be treated like a king again than having the same ol life it had over the past 3 years course . who knows ? maybe after the defi there will be another new trend that will come out and itl still be on the decentralized category  .

[Mahanton]

Then, when most of the tokens were no longer needed by anyone along with all the yeald farming, people simply left these DEXs and moved back to CEXs, because there are now more options to make money, and they all do not care about technology and will remain so for a long time. Practical application to DEXs will not come soon, and they will most likely remain in second swarms compared to CEXs. And DEXs can only revive again thanks to a new hype for DeFi tokens or something similar, and when it dies down, return to CEXs again.

What do you think about this?

This isnt something new anymore and we had observed this since from the beginning of time where DEX do exist.There's really a time where everything hypes up which would result into those rise in charts and when
that hype dies then expect for people to go into those traditional ways on where they had been get used to which on CEX.We do love decentralization but these cant beat up on what CEX is been offering.
One of the main reasons on why people do still continue to go back with cex is that because of fiat/crypto transactions.Yes, there might be some liquidity on dex but those are just temporal or in a short span of time
and that happened when defi had really make out some buzz to the market which it did really result into some increase but now theyre plummeting again which it isnt that surprising.

[Shallow]

I agree with you and also, data do not lie, and most importantly the fall in liquidity and trading volume should be a huge concern, and of course just like you rightly stated, it means people are moving back to centralized exchanges. But the question I asked myself is this, what made them go back to centralized exchanges after all the ride with decentralized exchanges? What I understood is this, Defi projects were the main reason liquidity and trading volumes grew in most DEXs, and we all knows that the DeFi hype is dropping at a faster rate showing that, as the hype drops so is the liquidity because people are no longer involved like they used to.
However, looking at the other angle, Dex is really needed because it is a bit secure than its counterpart, and bearing in mind the rate of hacks on Cexs is another factor to consider on why Dex is needed.

[wxa7115]

I just hope this is not a change in the trend we are seeing of more people using DEXs, it will be a shame that after this is over people decide to abandon DEXs and go back to CEXs, I know that the volume there is many times larger than whatever you can find in a DEX but it is also true that CEXs are getting more and more intrusive by the day on the data they ask from their customers and this is an opportunity for DEXs.

After all if they are truly decentralized then they will never have to ask for this kind of information and people will begin to choose to go there not only by the hype but also by the distinct advantages they offer over CEXs.

theres always a demand for dexe's because they offer something that you cant find in the cex'es field but the trend of defi boosted the use of the dexe's , isnt that great ?

 i know that the boost was temporary and its expected that when the defi era were over the volume of the dex can also go normalise but thats fine atleast dex experience to be treated like a king again than having the same ol life it had over the past 3 years course . who knows ? maybe after the defi there will be another new trend that will come out and itl still be on the decentralized category  .

Let us hope that people at least still remember after all of this that DEXs still exist and decide to keep using them after the DeFi hype is over, even if I know that it is impossible to maintain the current volume and most likely it is going to decrease dramatically during the next year I hope at the end that the volume is many times higher than what we had before this bubble, because quite honestly I tried to use DEXs in the past and you could only trade minuscule amounts of money.

But I have my doubts this will happen as many traders do not care about ideology or anything and only care about making money and in that aspect CEXs are still a better option due to the high volume they manage.

[mexite]

The growth of DEX as the preferred choice among crypto traders and investors may be slow but it will happen fully sometimes in the future as more advanced features and protective measures are built into DEX. The issues of rug pu by scam developers, listing of fake tokens to scam investors, and the Ethereum network congestion are just some of the teething problems affecting Uniswap and the likes.

If we can have new DEX with innovative solutions that can complement Uniswap, we'll see more traction. But for now, the load is borne only by Uniswap and a few others, whereas we have tens of top centralized exchanges driving liquidity and volume. So statistically, the comparison isn't even.