Bitcoin received a 3% hit as OKEx announced the temporary suspension of cryptocurrency withdrawals on October 16. Reports state that the exchange is being investigated by Chinese police, however, the nature of this investigation is still unclear. This news definitely caused a wave of panic in the cryptocurrency market, causing altcoins to lose some of their values as well.
Ethereum, the second-largest crypto on the market, noticed a 3.94% drop on the news, but was then met with another selling pressure that sent the price down 2.5%. However, Ethereum had a secret weapon in its arsenal in the form of decentralized finance, which helped it rebound from the second crash and its current value was $ 368.73.
DeFi or CeFi?
Market watchers have been assessing the extent of the impact following this news. Although most have focused on crypto assets, others have focused on decentralized finance. [DeFi] and how it could be an alternative to such events at a glance.
According to the founder of Santiment, Maksim Balashevich provided a painting that highlighted the DeFi performance on CeFi after the OKEx debacle.
Uniswap’s UNI token saw merchants enter its marketplace when the news went public. The UNI token took a hit initially with the flow of the market and the reaction of ETH, but the following hour saw a glorious rally making its way.
As UNI showed a positive increase, many crypto users were surprised, while others thought DeFi was a “safe haven against centralized exchanges.” Market Analyzer @Akadosang tweeted:
BREAKING: Cryptocurrency investors flock to $ UNI when they realize it’s a safe haven against centralized exchanges. #DeFi has seen an increase in inflows with some DEX outperforming Coinbase in volume. “
While @mrjasonchoi Fed up:
“” Wait a minute, DeFi figure this out, right? “- thought process of the average market participant in $ UNI last hour”
However, Bitcoiners and other crypto enthusiasts were quick to shut down this narrative as “flawed logic.” Traders argued that UNI’s price rose to decline as it had fallen on the news.
While others who argued in favor of pumping decentralized exchange to centralized exchanges, the suffering was also closed by Udi Wertheimer. remembering that:
“Defi markets are 100 times easier to stop than centralized exchanges … but don’t let the facts get to you”
The debate will continue as the market tries to decentralize more and the question of whether “DeFi solves this” may have to be tried and tested before jumping the gun.
This is a machine translation of our English version.
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