New data from on-chain intelligence firm IntoTheBlock finds that decentralized exchanges (DEXs) are seeing a rise in market share while a regulatory offensive develops in the US.
According to a new report from the firm, the U.S. Securities and Exchange Commission’s (SEC) charges against Binance and Coinbase for alleged securities violations last week are likely to have long-term effects on shaping the future of the industry.
The regulatory agency’s lawsuit against the two biggest centralized crypto exchanges in the world also deemed three large-cap crypto assets – Cardano (ADA), Polygon (MATIC), and Solana (SOL) – as securities.
According to IntoTheBlock, these actions have greatly increased the market share of DEXs out of all crypto volume, reaching an all-time high in May.
“The market share of DEXs surpassed 20% for the first time last month and could be set to continue climbing in light of the harsh conditions imposed on American exchanges.”
The analytics firm also says that if Coinbase and Binance delist ADA, MATIC, and SOL, their volumes would likely drop and traders may start flocking to decentralized exchanges.
Furthermore, IntoTheBlock finds that the number of long-term holders of Bitcoin (BTC), or addresses holding the king crypto for longer than a year, reached a new all-time high this week, which could be a sign that the market is shrugging off the SEC’s enforcement actions.
However, the analytics platform says the enforcement actions may accelerate crypto adoption overseas.
“Overall, the SEC’s actions may accelerate the trends towards crypto moving overseas and activity moving on-chain as opposed to through a centralized exchange. While there still is much to be processed and legal cases may go on for a while, long-term investors appear unfazed by the news.”
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Login/Sensvector
Credit: Source link
