While the crypto industry, in general, is reeling from the collapse of crypto exchange FTX, which was one of the top ones in the space, it is not all bad news for everyone.

There are some industry segments that seem to have gotten a boost because of the collapse and one of them is none other than decentralized finance (DeFi).

Dune Analytics published data showing that the last seven days saw trading volumes reach a massive $32 billion on decentralized exchanges (DEXs).

Uniswap volume

The majority of the trading volume was contributed by Uniswap, as about $20.9 billion in trades were made on the exchange over seven days.

The trading volume on Uniswap on November 8th was more than three times the volume a day earlier. This was on the day that Binance had made the announcement of a non-binding agreement for buying the FTX exchange.

A day earlier, the trading volume at Uniswap had been approximately $1.3 billion, which had been the average trading volume for the exchange in the last month.

But, the volumes had increased to a massive $4.2 billion after the bailout announcement came from Binance.

Other exchanges

There were a number of exchanges that saw their trading volumes double overnight. The same applied to Curve, which had a trading volume of $700 million and it increased to $1.3 billion.

The benefits also rolled down to smaller platforms in the DeFi space. 1inch network, which is the aggregation platform for different DEXs, tweeted on Friday that all protocols had seen gains in the 24 hours before the announcement.

Data from Dune shows that the trading volume last week on the network was close to $5.3 billion. The increase in popularity of decentralized exchanges in the previous week does not come as a surprise.

This is due to the fact that most of the horror stories of the ongoing liquidity crisis in the crypto industry, which has been named the crypto winter, tend to have the same pattern.

DEX rises in popularity

Crypto withdrawals had been suspended by most of the lending platforms in the market, including Vauld, Hodlnaut, Celsius Network, and Zipmex and they had cited ‘market conditions’.

This just meant that the platforms did not have the liquidity required for meeting the withdrawal requests made by customers. All of these platforms have now gone bankrupt.

Withdrawals are usually frozen for stabilizing liquidity, something that Celsius had mentioned in its announcement and had been used by others as well.

In the case of FTX, it made this move after it had received withdrawal requests worth $6 billion in just 72 hours.

This problem does not exist with decentralized exchanges because the assets are not in the custody of the exchange.

This means that customers will already have their digital assets in their possession, as there is no role of banks, but they do have a more complicated customer experience.

But, even if they are not user-friendly, they can certainly offer more security because they offer self-custody solutions, so you have private keys.