The recent collapse of centralized cryptocurrency exchange FTX has boosted the popularity of self-custody wallets, which allow users to store their tokens and act as their own banker instead of relying on off-chain exchanges.

While the trend is in its early stages, on-chain data showed that trading volumes and user growth for decentralized trading platforms have increased post-FTX, Bernstein analyst Gautam Chhugani wrote in a Wednesday note.

Moreover, user acquisition on the Ethereum (ETH-USD) blockchain has spiked 57% since November 4, significantly outpacing peers Binance Smart-Chain (BNB-USD) (-37%), Polygon (MATIC-USD) (+11%), Solana (SOL-USD) (-65%) and Avalanche (AVAX-USD) (-67%).

“We think this could be an early marker for an accelerated move towards decentralization over off-chain centralized platforms,” Chhugani contended, adding that the broad transition to “transparent on-chain markets is a positive one in crypto’s journey to re-building customer and policy-makers trust.”

Earlier this week, Coinbase Global (COIN), America’s largest (centralized) crypto exchange by trading volume, ditched four major tokens from its wallet service due to low interest.

Seeking Alpha contributor Mike Fay pointed out that the Solana network, of which its SOL token has been one of the most beaten down cryptos in the midst of the FTX mess, has seen its metrics deteriorate in recent months.

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