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Binance CEO Changpeng ‘CZ’ Zhao said blockchain throughput is “not there yet” to make his firm a hybrid exchange.
CZ was responding to a community member who advised that Binance be made a hybrid exchange. According to CZ, it is easier said than done because the exchange has “to ensure fund security” and other things.
He added:
“Make sure the counterparty of the trade gets paid and no one can scam the system, ie, real-time settlements. Blockchain throughput is just not there yet.”
Calls for more DEXs
Meanwhile, CZ believes the crypto industry needs more decentralized exchanges (DEXs).
CZ noted that the industry needs more options away from the major DEXs operating in the space. His tweet commented that PancakeSwap (CAKE) v3 was now live on BNB Chain and Ethereum (ETH).
According to CZ, while Pancake has the most users, Uniswap (UNI) dominates the space regarding the total value of assets locked (TVL) on the protocol. He pointed out that this makes the space “too centralized.”
He noted that the industry needed more options and added that “DEXs are easier to use if you know how to keep your wallet secure.”
Meanwhile, the Binance CEO warned that DEXs could get hacked and their codes could be exploited.
DEX volume rising in 2023
The recent regulatory scrutiny battling centralized exchanges has seen DEX volume steadily rise throughout 2023.
According to DeFiLlama data, DEX’s trading volume has risen nearly 100% since the beginning of the year to $133.32 billion as of the end of March.
The increased volume saw that Uniswap beat U.S.-based crypto exchange Coinbase. Uniswap recorded $71.6 billion in trading volume for March, which is 45% higher than Coinbase’s $49.4 billion.
Meanwhile, DEX’s trading volume has declined by roughly $3 billion on the year-on-year metric. In March 2022, DEX recorded a total volume of $136.4 billion.