# Market Analysis

#### 1. The cryptocurrency market continues to thrive with increasing market capitalization. Decentralized finance is quickly expanding in terms of volume due to the higher security and control it offers to users.

<figure><img src="https://820988097-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0tuKf6WiIhqQbuDYE49U%2Fuploads%2F6WIaJ0JQLINVSwoTMLRB%2Fimage.png?alt=media&#x26;token=e18a5982-3eb4-4f40-918c-4f87958d38df" alt=""><figcaption><p>Datasource：crypto.com, CoinMarketCap b=billion, m=million</p></figcaption></figure>

<figure><img src="https://820988097-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0tuKf6WiIhqQbuDYE49U%2Fuploads%2FemsxBK4WYfx1qbWjGVfx%2Fimage.png?alt=media&#x26;token=9bbc5b24-c826-4c50-893b-95877e78c929" alt=""><figcaption><p>Datasource：DefiLlama</p></figcaption></figure>

#### 2. Dex is too slow to meet real trading requirements.

### <mark style="color:purple;">DEX vs CEX Trading</mark>

|                                                                   |                                                                   |                                                                                                                                 |
| ----------------------------------------------------------------- | ----------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------- |
| **$4B VS $200B** Swap DEX & CEX daily transaction volume          | **400ms VS 20ms** Transaction confirmation time                   | **300 VS 50,000tps** One-application transaction throughput                                                                     |
| **80%** of the trades come from high frequency trading (HFT).\[1] | HFT requires transaction confirmation time of **less than 20ms.** | Whole network transaction throughput does not mean high throughput for a single dApp. HFT requires high transaction throughput. |

\[1] https://www.nasdaq.com/articles/what-you-should-know-about-high-frequency-traders-amidst-covid-19-2020-04-08

### <mark style="color:purple;">Trading Market</mark>

<figure><img src="https://820988097-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0tuKf6WiIhqQbuDYE49U%2Fuploads%2F70MJ3cqO6cCdX2ktaO3J%2Fimage.png?alt=media&#x26;token=72ffeb9e-3d97-421d-b5f3-01be5df77a70" alt=""><figcaption><p>[2] Based on https://coinmarketcap.com/rankings/exchanges/ [3] https://dappradar.com/industry-overview</p></figcaption></figure>

### <mark style="color:purple;">Key Indicators</mark>

<figure><img src="https://820988097-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0tuKf6WiIhqQbuDYE49U%2Fuploads%2FNBEIdMk1HFi8vGJ0xPzH%2Fimage.png?alt=media&#x26;token=e8c412af-d6e4-4b0a-a9b7-769dd8b16a35" alt=""><figcaption></figcaption></figure>
