Bitcoin is finally trading closer to $18K. The crypto community is talking about the positive impact of the US CPI report and other favorable factors making it possible to rally behind the behemoth of the industry.
On the other hand, many media outlets are missing the very important issue that has to be tackled within the crypto domain — the failure of centralized entities.
Not all of them are doing poorly, but the general reaction of the market is quite clear. Retail traders and investors have lost trust in centralized organizations with bad management. They want the industry to change.
The shift toward decentralization is already happening
We have seen a massive influx of users on decentralized exchanges like GMX. The trend has a strong foundation as more people see the utility of such platforms. GMX and Uniswap fared better in the period following the FTX debacle.
These two exchanges saw increases in trading volumes, user activity, and their respective native tokens surged in price.
At the same time, the decline of retail prices and the general trend in the market caused many investors to take their assets off popular trading platforms. Binance saw a record $7 billion outflow of assets during the last week.
Over half of that number is contributed by BTC holders moving off the biggest CEX platform in the world.
Trust funds like the Digital Currency Group and Grayscale Bitcoin Trust Fund are in a tough spot due to the falling interest toward intermediaries with questionable solvency.
The whole crypto industry lost over 61% of its value since May, which is a big number compared to just over 21% lost by S&P500.
Decentralization will save the industry
Meanwhile, we have a resurgence of DeFi platforms that saw increased interest from investors who are willing to put their capital into projects that have decentralized governance features.
Cardano is in its Voltaire era, meaning that it will be rolling out its version of decentralized governance soon. GMX and Uniswap will be even more popular in the immediate future. These are all good signs and indicate that the crypto industry has a way forward.