DEX season in the upcoming months?
After some discussions I'm getting more and more convinced that a lot of CEX traders will move their money to DEXes in the upcoming months. I've heard from really good traders around how they feel "not safe anymore" on CEXes because of the equity risk (FTX) and now even the oracle risks (Binance depeg this Friday).
On the other hand most of the DEX liquidity pools usually works on simple AMM model so except unlocked assets you basically know very well:
- How deep the liquidity is
- Who are the main participators
- If the biggest holders can dump chart easily
- Check treasury/revenue/buy-backs/...
- ...well transparency (despite the wallet owners could be anonymous)
If this really becomes true then we can see in the next months rotation into the large and mid caps on DEXes and growing DEX volume favorizing DEX aggregators, DEXes itself and even PERP DEXes especially if they'll react on current situation with methods how to prevent price manipulations and solve auto-deleverage events.
In one sentence: Despite the last event destroyed a lot (even good) traders this impulse could from my point of view bring more traders into an on-chain trading 🤝