While we cannot argue that the collapse of FTX was a huge hit to the whole crypto industry, it was a band-aid that had to be removed exposing deep wounds that must heal naturally.
The industry has been relying on quick growth at any cost and negligence on part of everyone, from users to CEOs. After the catastrophe, we all have time to rethink options and recollect before the inevitable bull rally in the future.
GMX grew by 26%
A headline that flew under the radar is this one. People are talking about FTX, moves by Binance and KuCoin to prove that they are solvent and reliable, and other hot topics.
Meanwhile, the market is reacting in a completely different way and throwing money at decentralized exchanges which is a natural response to a centralized entity collapsing due to the lack of any internal oversight and regulations.
Decentralized platforms like GMX are getting momentum as the market looks for alternatives that are safe, reliable, and scalable. Across the industry, several DEX platforms grew notably.
Uniswap demonstrated resilience by recovering faster than other projects with UNI gaining 32% since its dip at the beginning of November.
Gains Network by Polygon reported an influx of users which is certainly a direct result of the FTX debacle. While all exchanges received a boost, decentralized exchanges experienced significant growth continuing to this day.
GMX was the winner of the race with over 100% growth since its November dip and a fast recovery after the FTX collapse to October levels.
Decentralized exchanges will rule in 2023
Despite the best efforts from Binance and other huge CEX platforms, many enthusiasts will be moving their business to DEX. Newcomers and people who were burnt by FTX will also look for safer options that will be propped up by community members on various internet forums.
The narrative is changing and decentralization sounds like the best direction for the industry in the immediate term.
This development is good for the industry as it will focus its attention on the initial promise of Bitcoin — true decentralization and independent governance.