Binance’s tokens have underperformed compared with the rest the market. This suggests that decentralized exchanges are the ones driving price discovery. Traders use central platforms to withdraw liquidity.
Ignas says that the Pudgy Penguins tokens are not experiencing any problems. Complete crash Since their Binance listing.
As at the time of publication, PENGU traded for $0.028, down 60 percent from its $0.07 listing price, and CGPT has fallen 4.7% in value since Jan. 10, when it first appeared on the stock exchange.
Meanwhile, the memecoin Simon’s Cat (CAT) and Magic Eden’s native token ME have fallen roughly 70% since their listings.
Ignas is of the opinion that it’s a good thing for the industry:
“Previously, price discovery occurred in private VC markets, with CEXs [centralized exchanges] as exit liquidity. Now, DEXs [decentralized exchanges] are for price discovery and CEX for exit liquidity.”
He cited Velodrome’s (VELO) listing to further highlight this new dynamic. Binance’s platform created trading pairs of the VELO coin, and its current price is $0.1154.
It is mainly due to the fact that most traders are now classified as “smart money” on decentralized exchanges.
Ignas emphasized that the existence of exit liquidity sources, like centralized exchanges is good for the market.
The On-chain Activity reaches new heights
According to DefiLlama’s data, spot monthly trading volumes registered by the decentralized exchanges in December reached a new record of $434.4billion. This is a significant increase over the prior peak, which was more than $50billion. The following are some of the most effective ways to increase your ROI:.
During the same period, these decentralized platforms recorded a volume of nearly $341 Billion.
It is notable that as of 13th January, the percentage of the monthly volume of trading in spot was traded on decentralized exchanges compared to centralized ones.
The “DEX to CEX Spot Trade Volume”The ratio You can calculate the amount by yourself. According to The Block, DEXs traded 16 percent of the spot volume recorded by CEXs in January. However, with more than half the month remaining, it’s too early to determine how the ratio will fluctuate over the next two weeks.
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