Elon Musk is pushing the Bitcoin up to $50,000 but another issue matters for exchanges: to attract customers more than before as institutional investors are coming in, disrupting the retail trading of Bitcoin. No, we don't talk about Fidelity but Bittrex which its CEO said this.
As UK's Financial Conduct Authority released a paper banning derivative trading in crypto because it's too risky and retailers would lose huge sum of money, FTX continues to propose these products as the exchange is not registered in Great Britain.
However, the aspect exchanges are pushing in is DeFi and the proper blockchain. To have a closer look, let's get interested at Kucoin, Binance and Huobi.
Binance
As Ethereum blockchain has high fees, Binance has launched Binance Smart Chain, its own blockchain with a key player: Pancakeswap.
Pancakeswap competes with Uniswap. The former has more than $1 billion of TLV, as the latter more than $10 billion.
But the Binance Smart Chain has other products such as Venus and Auto available directly on the Trust Wallet, copying the ERC-20 wallet.
Huobi
The Chinese exchange Huobi has its own DeFi portal. Huobi competes with Binance and results are here as the figures speak in spite of the project just starts. Huobi has also a Huobi Wallet proposing access to Ethereum, EOS and Tron blockchain. Soon, its own blockchain will be available such as Binance.
Kucoin
Kucoin uses its token such as Binance and Huobi to build its DeFi services, publishing regularly the advantages and advancement of its token. The latest update is this.
Conclusion
It's a trend called CeDeFi. I take mainly Asian exchanges because it is the most advanced market. Kucoin, Binance and Huobi are maybe not alone to diversify in DeFi. Bittrex and FTX take a more centralized approach, but Sushiswap is owned by SBF, FTX CEO.
It is just the start. I didn't talk about decentralized exchanges. I wanted to insist on CeDeFi because the issue is what to do to compete with the latter. Uniswap is popular, but depends on Ethereum with high fees. Binance Smart Chain and HuCo are also in the game. My last words: CeDeFi is coming.