The collapse of the cryptocurrency trading platform FTX has had an impact on the entire digital currency market, even though certain market participants have benefited from it.
In order to take advantage of the transparency that decentralised exchanges provide, traders are shifting away from centralised intermediaries and toward them, according to a report by ARK Investment Management.
Decentralized exchanges (DEXs) have seen gradually rising transaction volumes when compared to controlled exchanges (CEXs) since 2020.
The percentage of trades executed on CEX hit 25% in February 2022. In November, the DEX-to-CEX ratio increased 40%, from 11.8% to 16.1%, following a decline from February. This might mean that more traders are becoming aware of the transparency DEXs provide.
According to Ark CEO Cathie Wood in an interview with Bloomberg, the recent losses suffered by FTX and other top cryptocurrency companies only help to reinforce the foundation for the pre-eminent cryptocurrency. She reiterated the $1 million price forecast for Bitcoin BTC/USD by 2030 and claimed that it would emerge out of this “smelling like roses.”
Wood has purchased more than 176,000 shares of Grayscale Bitcoin Trust GBTC/USD for an estimated $1.46 million. The purchase was made through the ARK Next Generation Internet ETF ARKW.
Bitcoin traded lower on Monday evening at $17043.42
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