The recent data from The Block's Data Dashboard shows a shift in trading behavior in the crypto market, with traders increasingly returning to centralized exchanges from decentralized ones. The decline in monthly volumes on decentralized exchanges relative to centralized exchanges began in May and continued through June, dropping from 22% to 16.8%. By early July, the ratio had fallen further to under 14%. This shift can be attributed to the waning interest in memecoins and the growing popularity of large-cap cryptocurrencies like Bitcoin and Ethereum, sparked by BlackRock's surprise filing for a spot Bitcoin ETF. Institutional investors entering the crypto space are believed to be driving the increased trading volumes, with various companies filing their own applications for funds to track the price of Bitcoin following BlackRock's filing. The move back to centralized exchanges reflects a change in investor sentiment and a preference for regulated and established platforms. However, as the crypto market is known for its volatility, the balance between centralized and decentralized exchanges may shift again in the future.

Become a member at https://plus.acast.com/s/the-crypto-sho.