DEX Surges in Market Share as CEX Activity Declines

In June, the trading volume ratio of futures on decentralized exchanges (DEX) to centralized exchanges (CEX) reached an all-time high of 8%. Concurrently, spot trading volumes on CEX dropped to their lowest level since September 2024.

A significant factor driving growth in the derivatives sector has been the Hyperliquid platform. Although its trading volume fell by 15% to $210 billion, it solidified its market position amidst a more substantial decline among its competitors.

For instance, the futures trading volume on Binance during the same period decreased by 20%. Consequently, Hyperliquid’s share of the DEX derivatives market rose from 69.77% to 75%.

Additionally, APX Finance made a notable contribution. In June, its trading volume exceeded $34 billion, reflecting a remarkable 350% monthly increase. This surge is likely linked to user incentive programs and activities of market makers.

A similar trend can be observed in the spot market. In June, trading volumes on CEX fell from $1.47 trillion in May to $1.07 trillion. This represents the lowest figure since September 2024 and is 63.6% lower than the peak in December.

On decentralized platforms, trading volumes increased to $393 billion. The ratio of DEX to CEX spot trading volumes set a new record, reaching 29%.

Analyst Min Young from Presto Research noted that activity on DEX is fueled by platforms like Hyperliquid and traders chasing airdrops and rewards points.

Vincent Liu, CIO of Kronos Research, explained that traders are shifting to DEX due to a decline in trust towards CEX and lower fees. He emphasized that decentralized platforms provide real benefits, including trading freedom, self-custody of assets, and early access to tokens.

To recall, in May, DEX trading volume amounted to $410.2 billion, which accounted for over a quarter of the equivalent CEX figure.