Odaily, citing Caixin, reported that the Binance hack could create an opening for decentralized exchanges, or DEXs.
According to the report, whenever a major centralized exchange, or CEX, is hit by a sudden security incident or a broader trust shock, DEXs and the wider DeFi sector tend to see a notable wave of capital inflows and development opportunities. Caixin said this time may be no different.
Caixin says DEXs may absorb funds returning on-chain
The report said DEX security is backed by computer systems and cryptography, which means they do not face the same risk of being compromised through social engineering attacks that plant malware or break into centralized systems. It added that hard on-chain rules are enforced automatically, including constraints such as time locks and automatic circuit breakers. Even if a hacker obtains a key, the preset rules in the contract still have to be followed.
Caixin also said the incident has again highlighted the warning: "Not your keys, not your coins." As concerns over the safety of centralized custody rise, a large number of users may move assets into personal cold wallets or non-custodial on-chain wallets.
Uniswap and Jupiter named in the report
Once those assets flow back on-chain, the report said, the resulting demand for trading, liquidity mining and yield products could be taken up by leading DEXs such as Uniswap and Jupiter. That, in turn, could drive a short-term surge in DEX trading volume and total value locked, or TVL.
