Trading Volume on DEX Soars Compared to Centralized Exchanges (CEX)

According to the latest data from The Block, the trading ratio between decentralized exchanges (DEXs) and centralized exchanges (CEXs) has reached a record high of 20.21%. This means that for every $1 billion traded on centralized platforms like Binance or OKX, approximately $202 million is now being transacted on decentralized platforms (DEXs).

This marks a significant leap from the previous record of 14.22% set in July 2024, reflecting a clear trend of users increasingly opting for decentralized solutions.

In just the first week of January 2025, DEXs recorded an impressive total trading volume of $48.72 billion. Uniswap led the pack with $14.85 billion, followed by Raydium at $12.95 billion, and PancakeSwap securing third place with $7.88 billion.

In contrast, CEXs are experiencing a sharp decline. Trading volumes have dropped by more than half in just two weeks, falling from $102 billion (on December 23, 2024) to $52 billion. However, since the start of January 2024, CEXs have still generated a total trading volume of $309 billion, with Binance contributing $101.8 billion, followed by Upbit ($33.33 billion) and Bybit ($32.85 billion).

Notably, Solana has overtaken Ethereum to become the blockchain with the highest trading volume over the past month, registering $113.04 billion, which is 43% higher than Ethereum’s $78.9 billion. This milestone is particularly significant given the memecoin trend, which accounted for 24% of investor interest last year, with many memecoins launched on Solana—especially after the debut of pump.fun in April 2024.

The year 2024 also posed numerous challenges for CEXs, with a series of high-profile hacks, including WazirX ($230 million), Indodax ($20 million), BtcTurk ($54 million), and BingX ($43 million). These incidents have eroded user trust, driving more people toward DEXs, which continue to improve in terms of speed, cost, and security. A prime example is Solana’s quantum-resistant Winternitz Vaults feature.

However, CEXs still maintain a competitive edge in the derivatives trading segment—a stronghold that allows them to attract the majority of leveraged traders, a market that DEXs have yet to fully penetrate.