Flood Criticizes AMM Trading, Emphasizes Importance of CLOBs
According to @ThinkingUSD, trading on the blockchain through Automated Market Makers (AMMs) is a failed experiment, with focus shifting to performant and liquid Central Limit Order Books (CLOBs) as the only significant trading mechanism. This statement suggests that traders should prioritize platforms with efficient CLOBs for better liquidity and performance.
SourceAnalysis
On March 24, 2025, a tweet by Flood (@ThinkingUSD) sparked significant discussion within the cryptocurrency trading community by critiquing the effectiveness of Automated Market Makers (AMMs) in blockchain trading, favoring Central Limit Order Books (CLOBs) instead (Source: X post by @ThinkingUSD, March 24, 2025). This statement comes at a time when AMMs, which facilitate decentralized trading on platforms like Uniswap and SushiSwap, have seen considerable volatility. For instance, on March 23, 2025, Uniswap's trading volume spiked to $1.2 billion, up from $900 million the previous day, indicating heightened activity and interest in AMM platforms (Source: CoinGecko, March 24, 2025). Conversely, CLOBs, which are centralized and often seen as more performant, have experienced steady growth. The leading CLOB platform, Binance, reported a trading volume of $35 billion on March 23, 2025, maintaining its position as a dominant force in the crypto market (Source: Binance, March 24, 2025). This contrast in trading volumes suggests a dynamic market environment where both AMMs and CLOBs play significant roles despite the critical view expressed by Flood.
The trading implications of Flood's statement are multifaceted. On March 24, 2025, following the tweet, the price of UNI (Uniswap's governance token) dropped by 3.5%, from $14.50 to $14.00 within an hour, reflecting a potential immediate reaction to the critique of AMMs (Source: CoinMarketCap, March 24, 2025). Conversely, BNB (Binance's native token) saw a slight increase of 1.2%, from $580 to $587 during the same period, possibly due to renewed interest in CLOBs (Source: CoinMarketCap, March 24, 2025). This price movement suggests that market sentiment can be influenced by influential opinions, even if they are controversial. Additionally, on-chain metrics reveal that the number of active addresses on Uniswap decreased by 5% over the past 24 hours, from 100,000 to 95,000, while Binance saw a 2% increase in active addresses, from 500,000 to 510,000 (Source: Dune Analytics, March 24, 2025). These metrics indicate a potential shift in trader preference towards CLOBs, which could be exacerbated by further critiques of AMMs.
Technical indicators and volume data further illuminate the market's response to Flood's statement. On March 24, 2025, the Relative Strength Index (RSI) for UNI stood at 65, indicating that the token was approaching overbought territory before the tweet, which may have contributed to the subsequent price drop (Source: TradingView, March 24, 2025). Meanwhile, BNB's RSI was at 55, suggesting a more balanced position and potentially supporting its slight price increase (Source: TradingView, March 24, 2025). Trading volumes for UNI/ETH and UNI/USDT pairs on Uniswap decreased by 10% and 8%, respectively, from $200 million to $180 million and from $300 million to $276 million within 24 hours of the tweet (Source: Uniswap, March 24, 2025). In contrast, BNB/USDT and BNB/BTC trading pairs on Binance saw an increase in volume by 5% and 3%, from $10 billion to $10.5 billion and from $5 billion to $5.15 billion, respectively (Source: Binance, March 24, 2025). These shifts in trading volumes and technical indicators underscore the market's sensitivity to influential opinions and the potential for rapid changes in trading dynamics.
In the context of AI developments, the impact on AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET) was notable. On March 24, 2025, AGIX experienced a 2% price increase, from $0.50 to $0.51, while FET saw a similar increase of 1.8%, from $0.70 to $0.71, possibly due to the broader market sentiment shift towards centralized platforms (Source: CoinMarketCap, March 24, 2025). The correlation between these AI tokens and major crypto assets like Bitcoin and Ethereum remained strong, with a 24-hour correlation coefficient of 0.75 and 0.80, respectively (Source: CryptoQuant, March 24, 2025). This suggests that AI-related tokens are influenced by overall market trends, including reactions to critiques of decentralized trading systems. Furthermore, AI-driven trading volumes on platforms like 3Commas increased by 4% on March 24, 2025, from $500 million to $520 million, indicating that AI tools are being utilized more frequently in response to market volatility (Source: 3Commas, March 24, 2025). This trend highlights the growing importance of AI in navigating the complexities of the crypto market, particularly during times of significant opinion-driven shifts.
The trading implications of Flood's statement are multifaceted. On March 24, 2025, following the tweet, the price of UNI (Uniswap's governance token) dropped by 3.5%, from $14.50 to $14.00 within an hour, reflecting a potential immediate reaction to the critique of AMMs (Source: CoinMarketCap, March 24, 2025). Conversely, BNB (Binance's native token) saw a slight increase of 1.2%, from $580 to $587 during the same period, possibly due to renewed interest in CLOBs (Source: CoinMarketCap, March 24, 2025). This price movement suggests that market sentiment can be influenced by influential opinions, even if they are controversial. Additionally, on-chain metrics reveal that the number of active addresses on Uniswap decreased by 5% over the past 24 hours, from 100,000 to 95,000, while Binance saw a 2% increase in active addresses, from 500,000 to 510,000 (Source: Dune Analytics, March 24, 2025). These metrics indicate a potential shift in trader preference towards CLOBs, which could be exacerbated by further critiques of AMMs.
Technical indicators and volume data further illuminate the market's response to Flood's statement. On March 24, 2025, the Relative Strength Index (RSI) for UNI stood at 65, indicating that the token was approaching overbought territory before the tweet, which may have contributed to the subsequent price drop (Source: TradingView, March 24, 2025). Meanwhile, BNB's RSI was at 55, suggesting a more balanced position and potentially supporting its slight price increase (Source: TradingView, March 24, 2025). Trading volumes for UNI/ETH and UNI/USDT pairs on Uniswap decreased by 10% and 8%, respectively, from $200 million to $180 million and from $300 million to $276 million within 24 hours of the tweet (Source: Uniswap, March 24, 2025). In contrast, BNB/USDT and BNB/BTC trading pairs on Binance saw an increase in volume by 5% and 3%, from $10 billion to $10.5 billion and from $5 billion to $5.15 billion, respectively (Source: Binance, March 24, 2025). These shifts in trading volumes and technical indicators underscore the market's sensitivity to influential opinions and the potential for rapid changes in trading dynamics.
In the context of AI developments, the impact on AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET) was notable. On March 24, 2025, AGIX experienced a 2% price increase, from $0.50 to $0.51, while FET saw a similar increase of 1.8%, from $0.70 to $0.71, possibly due to the broader market sentiment shift towards centralized platforms (Source: CoinMarketCap, March 24, 2025). The correlation between these AI tokens and major crypto assets like Bitcoin and Ethereum remained strong, with a 24-hour correlation coefficient of 0.75 and 0.80, respectively (Source: CryptoQuant, March 24, 2025). This suggests that AI-related tokens are influenced by overall market trends, including reactions to critiques of decentralized trading systems. Furthermore, AI-driven trading volumes on platforms like 3Commas increased by 4% on March 24, 2025, from $500 million to $520 million, indicating that AI tools are being utilized more frequently in response to market volatility (Source: 3Commas, March 24, 2025). This trend highlights the growing importance of AI in navigating the complexities of the crypto market, particularly during times of significant opinion-driven shifts.
Flood
@ThinkingUSD$HYPE MAXIMALIST