CZ says current blockchain throughput cant make Binance a hybrid exchange
Binance CEO Changpeng ‘CZ’ Zhao Said Blockchain throughput is “not yet” to make his company a hybrid exchange.
CZ was responding to a community member who advised Binance to become a hybrid exchange. According to CZ, it’s easier said than done, as exchanges need to do things like “ensuring the safety of funds.”
he added:
“Make sure the other side of the transaction gets paid, and make sure no one can fraud the system, real-time payments. Blockchain throughput is just not there yet.”
Call for more DEX
On the other hand, CZ I believe The cryptocurrency industry needs more decentralized exchanges (DEXs).
CZ pointed out that the industry needs more options away from the main DEXs operating in this space. His tweet commented that PancakeSwap (CAKE) v3 is now live on the BNB chain and Ethereum (ETH).
According to CZ, Pancake has the most users, but Uniswap (UNI) dominates the space when it comes to total protocol locked assets (TVL). He noted that this made the space “too concentrated.”
He noted that the industry needs more options, adding that “DEXs are easy to use if you know how to keep your wallet safe.”
Meanwhile, the Binance CEO warned that the DEX could be hacked and its code abused.
DEX Volume to Rise in 2023
DEX volumes have steadily increased throughout 2023 due to recent regulatory scrutiny to combat centralized exchanges.
According to DeFiLlama dataDEX trading volume increased by almost 100% year-to-date to $133.32 billion at the end of March.
Uniswap beats US-based cryptocurrency exchange Coinbase due to increased volume. Uniswap’s March trading volume was $71.6 billion, 45% higher than Coinbase’s $49.4 billion.
DEX trading volume, on the other hand, decreased by about $3 billion year-on-year. In March 2022, DEXs totaled $136.4 billion.
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