Last June, spot trading volume on centralized exchanges (CEX) sharply dropped to 1.07 trillion USD, the lowest since September 2024. This marks a 27% decrease from the previous month and a 63.6% decrease from the peak in December last year. In contrast, trading volume on decentralized exchanges (DEX) reached 390 billion USD, showing a clear recovery and the second consecutive month of growth.

The DEX to CEX ratio sets a new record

This opposition has pushed the spot trading ratio #DEX compared to CEX to a new record high of 29%. At the same time, the futures trading ratio on DEX/CEX also hit 8%, the highest ever recorded. This means that for every 1 billion USD traded on centralized exchanges like Binance or OKX, up to 250 million USD was executed through decentralized platforms like PancakeSwap or Aerodrome. Previously, DEX platforms first reached 25% of the global spot market share compared to CEX on June 2.

Explaining the reasons for the decline in CEX and the growth of DEX

Min Jung, an analyst at Presto Research, believes that the decline in trading volume on exchanges #CEX comes from a shift in market dynamics. He explained: "While Bitcoin remains stable around the ATH region, most altcoins are struggling, and even ETH is down nearly 40% from its peak. This shows that the market is being driven by institutional money flowing into Bitcoin, while buying power from retail investors, a group that usually favors altcoins, is quite weak.”

Jung also added that unlike previous growth cycles led by retail investors, this rally revolves around large institutions accumulating Bitcoin, while stablecoins, crypto stocks, and corporate bonds play a secondary role.

On the DEX side, Mr. Jung noted that activity is increasing thanks to the success of platforms like Hyperliquid, along with a new wave of DEX with increasingly smooth user experiences. However, most of the activity still comes from traders "hunting" airdrops and farm points.

Vincent Liu, CIO of Kronos Research, further emphasized that the decline in confidence in CEX along with lower costs has led many traders to switch to DEX. He shared: "DEX is now truly attracting interest, not just for speculation, but for its clear utility, allowing freedom to trade any asset, self-custody rights, and early access to many opportunities. Traders are becoming increasingly strategic in their actions."