In the running year, the centralized exchanges (CEX) have amassed a great amount of user base and attraction. The people from both inside and outside the crypto industry want to learn about them.
In the year 2022, the CEXs has gained so much attention that people from all over the world have started searching for them. They want to know about centralized exchanges and how they operate.
As a result, many crypto-blockchain data analytical firms have started to compile data to discover how much the CEX attraction has grown recently.
Leading Countries for CEX Users
As expected, the United States is the country where the number of CEX users is at the highest.
Countries such as Japan and Turkey have also found their places among the top 10 countries in terms of traffic for CEX and cryptocurrencies.
The information has been gathered by Huobi Research and has been shared in the crypto overview and trends report for the year 2022-2023.
The research that the firm has carried out is based on the data collected from the top 10 centralized exchanges. The ranks of these exchanges are based on their reliability, trading volume, trading depth, and active users.
Huobi Research’s Findings
From the compiled data, Huobi Research has confirmed that the United States is the leading country when it comes to CEX adoption.
The country has the highest number of CEX users, representing a 9% share of the overall CEX user base worldwide.
The next country on the list is South Korea which has a 7.4% share in terms of traffic for CEX. The third country on the list is Russia with a 6.1% share.
The fourth country is Turkey which has a 5.6% share while Japan has the fifth highest number with a 3.8% share.
Each Country has Different Drivers
The firm has revealed that each country has its own drivers that are attracting users to the CEX industry.
The different cases from the countries include very high unemployment rates. In Japan and South Korea, youngsters are moving to the centralized exchange industry to invest money.
The reason behind the youngsters’ huge interest in cryptocurrencies is to make money to buy or rent a house.
The prices of housing in both countries are very high so the youngsters are using crypto to generate extra income. They are using the extra cash to either pay their housing expenditures or take care of other things.
As for Turkey, the reason behind moving to cryptocurrencies and centralized exchanges is to evade hyperinflation. The country is facing a major inflation issue and it is being called hyperinflation.
Therefore, the country has decided to go all-out in the adoption of cryptocurrencies but it prefers on doing it through centralized channels.
For Russia, it is the best way to circumvent Western sanctions and strictness. The European Union has been imposing huge sanctions on Russia and they recently launched their 9th wave of sanctions on Russia.
Therefore, the country is adopting cryptocurrencies and is preferring centralization, which is safer and streamlined.
Role of CEXs in the Crypto Market
According to most of the crypto as well as economic experts, the centralized exchanges will be the ones setting the right course for the success of crypto.
These exchanges are considered friendly and reliable because of their regulated and centralized nature.
Even the majority of the new investors are moving to centralized exchanges because they consider them to be secure.
Another major plus point of the industry is that most of the liquidations in the cryptocurrency industry are combined in the Cass.
The adoption of centralized exchanges has grown tremendously in recent months. This is because of the major crashes that have taken place in the decentralized industry.
One of the recent incidents was the FTX crash, a decentralized exchange that ended up filing for bankruptcy, leaving over a million people with losses.