DEX vs. CEX: The Battle for Dominance

1. DEX: The Rise of Decentralized Trading

In recent years, decentralized exchanges (DEX) have experienced remarkable growth. Notably, in January 2025, monthly trading volume on DEXs reached $560 billion, marking the first time they captured over 20% of the spot trading market share in the crypto industry. This growth is driven by increasing demand for asset control and transparency in trading.

2. CEX: Maintaining a Crucial Role

Despite the rapid growth of DEXs, centralized exchanges (CEX) like Binance and Coinbase continue to hold a significant position in the market. CEXs offer high liquidity, user-friendly interfaces, and robust customer support, making them particularly suitable for newcomers to the crypto space.

3. Future Outlook: Collaboration Between DEX and CEX

Rather than direct competition, DEXs and CEXs can collaborate to leverage each other's strengths. Some CEXs have begun integrating DEX features to provide users with more flexible trading experiences. This collaboration could foster sustainable and comprehensive growth in the crypto trading market.