The Citigroup report says that decentralized crypto exchanges (DEX) have significantly strengthened their market position. They began to attract more users, as a result, their competition with centralized exchanges (CEX) intensified.
Many Internet users prefer to switch to DEX, as such sites do not require verification, which allows them to remain anonymous.
DEX is a blockchain application whose users can perform operations with digital currencies according to algorithms and without mediation from the platform itself. A centralized exchange, on the other hand, acts as an intermediary between buyers and sellers of cryptocurrencies. Compared to Coinbase, for example, decentralized platforms offer better conditions for traders. In addition, transactions can be concluded with minimal commissions.
Citigroup believes that in the coming years, DEXs will become more popular than centralized platforms. Since the collapse of Celsius Networks and Voyager Digital, decentralized exchanges have become more and more seen as the best alternative to CEX. As control over the blockchain industry is strengthened, such platforms will become more transparent, and not only retail, but also institutional investors will use their services.