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Market Meditations | November 17, 2022

Decentralised finance (DeFi) platforms are gaining popularity due to the recent FTX collapse.

  • Ian Rogers, chief experience officer at Ledger, the company that produces the hardware wallets often used for self-custody, reported that November 15th was a record day in sales for the company.
  • Data from Nansen, the blockchain analytics platform, shows that over the previous week, the number of users of DeFi protocols has increased by double digits.
  • MakerDAO, DeFi’s largest protocol by total value locked (TVL), has added over 30% more addresses in the last week. Similarly, the popular decentralised lending platform Aave has noticed a 70% increase in users whilst Curve, a DEX has a 63% surge.
  • Additionally, another important DEX, Uniswap, had the second largest volume of all crypto exchanges this week. According to Hayden Adams, the founder of Uniswap, the DEX reached $1.1B in volume on November 14th, second only to Binance and ahead of Coinbase.

The collapse of FTX has left a sour taste in many mouths and is possibly the darkest day in crypto history. However, the moment will prove pivotal for the crypto industry in many ways.

For actionable tips on how to take advantage of the massive outflows from centralised exchanges (CEX), check out yesterday’s big idea, ‘Follow The Money’.