DEX to CEX Spot Trade Volume, the ratio of decentralized exchange (DEX) to centralized exchange (CEX) spot trade volume, is on track to hit a new all-time high, sitting at 13.76% in July 2024 at the time of writing, edging past the previous record of 13.7% set in May 2023.
This milestone comes as DEX volume reached $123 billion in June, compared to $1.11 trillion in volume on CEXs for the same period.
While impressive, it's worth noting DEX volume peaked earlier this year at $203 billion in March 2024, suggesting there's still room for growth in this trend.
The landscape of DEX trading is evolving, with some interesting shifts in market share. Uniswap continues to dominate, accounting for about 40% of DEX volume in the past few months. Notably, Raydium has seen substantial growth, more than doubling its market share from 8% to 19% since the start of 2024.
Several factors are likely contributing to the increasing appeal of DEXs:
While the growth of DEXs aligns with crypto's ethos of decentralization, it's not without challenges:
As DEXs continue to gain traction, they're not just changing how we trade crypto—they're reshaping the entire financial landscape of the blockchain world. This shift towards decentralization aligns with the core ethos of crypto, potentially offering users more control and transparency in their trading activities.
The competition between DEXs and CEXs drives innovation across the entire crypto trading ecosystem, ultimately benefiting users with more choices and improved services.
This is an excerpt from The Block's Data Insights newsletter . Dig into the numbers making up the industry’s most thought-provoking trends.