📰 DEX to CEX: spot volume reaches new ATH and redefines crypto market dynamics
An all-time high that changes the game
The token transfer volume from decentralized exchanges (DEX) to centralized exchanges (CEX) has reached a new all-time high, marking a key turning point in the relationship between both infrastructures. According to data from Token Terminal and DeFiLlama, the capital flow from platforms like Uniswap, PancakeSwap, and dYdX to Binance, Coinbase, and Kraken has surpassed $12 billion in weekly volume.
This phenomenon not only reflects a growing liquidity in the spot market but also a transformation in user behavior, as they seem to seek security, instant execution, and institutional access after more speculative DeFi strategies.
A tactical migration or a sign of consolidation?
For Hasu, a researcher at Flashbots and advisor to Lido, "what we see is a rational migration of retail and institutional capital towards more stable structures, especially in tense geopolitical contexts and highly volatile markets." This suggests that investors are using DEXs as points of entry or experimentation, but are turning to CEXs for faster or more stable capitalizing.
The spot volume on Binance has recorded peaks correlated with massive inflows from DEX contracts, especially at times when Bitcoin and Ethereum volatility increases after global macroeconomic decisions.
Impact on the Web3 narrative
This new ATH also poses an ideological dilemma. While decentralized platforms promote self-custody and autonomy, the return of capital to CEX could be read as a reaffirmation of the need for hybrid infrastructure. As Mona El Isa, founder of Avantgarde Finance, explains: "decentralization remains an ideal, but we cannot deny that in times of uncertainty, investors choose what allows them to execute faster, not necessarily what is most ethical."
What does this mean for traders and investors?
This surge in flow could also indicate new arbitrage strategies, bots taking advantage of price differences, or even institutions liquidating profits in regulated environments. Additionally, it increases pressure on DEXs to offer better interfaces, security, and speed if they wish to compete on equal terms.
