• According to on-chain intelligence firm IntoTheBlock, decentralized exchanges (DEXs) are experiencing a rise in market share as the US regulatory environment becomes uncertain.
• The SEC’s charges against Binance and Coinbase for alleged securities violations last week may have long-term effects on shaping the future of the industry.
• The analytics platform also found that the number of long-term holders of Bitcoin (BTC) reached an all-time high this week, indicating that the market is weathering the storm of enforcement actions.

Decentralized Exchanges See Spike in Market Share

New data from on-chain intelligence firm IntoTheBlock finds that decentralized exchanges (DEXs) are seeing a rise in market share while a regulatory offensive develops in the US. According to a new report from the firm, the U.S. Securities and Exchange Commission’s (SEC) charges against Binance and Coinbase for alleged securities violations last week are likely to have long-term effects on shaping the future of the industry.

Market Share Reaches All Time High

The regulatory agency’s lawsuit against two biggest centralized crypto exchanges deemed three large-cap crypto assets – Cardano (ADA), Polygon (MATIC), and Solana (SOL) – as securities. This has led to an increase in DEX’s market share out of all crypto volume, reaching an all-time high in May. If Coinbase and Binance delist ADA, MATIC, and SOL, their volumes would likely drop and traders may start flocking to decentralized exchanges more often.

Long Term Holders Unfazed by News

IntoTheBlock also found that the number of long-term holders of Bitcoin (BTC), or addresses holding BTC for longer than one year, reached an all time high this week – which could be a sign that investors are not too worried about SEC’s enforcement actions.

Crypto Moving Overseas

Overall, IntoTheBlock says these actions may accelerate trends towards crypto moving overseas as well as activity moving on chain instead through centralized exchange services.,

Conclusion

Long term investors appear unfazed by news regarding SEC’s enforcement actions indicating confidence within cryptocurrency markets despite regulatory uncertainty surrounding certain assets such as ADA, MATIC and SOL