The cryptocurrency landscape is witnessing a notable shift as traders increasingly favor decentralized exchanges (DEXs) over their centralized counterparts (CEXs). This trend is reflected in the rising DEX-to-CEX ratio, which has recently hit new all-time highs. This surge indicates a growing preference among users for decentralized trading platforms, mainly driven by the appeal of early token listings and the autonomy that DEXs offer.
Several factors contribute to this evolving dynamic. One significant aspect is the increasing awareness of the risks associated with centralized platforms. High-profile failures of CEXs, such as the collapse of FTX in 2022, have eroded user confidence, highlighting the potential for loss of funds due to mismanagement or security breaches. Over the past decade, numerous hacks on exchanges have resulted in billions of dollars in losses, reinforcing the principle of "not your keys, not your coins," which emphasizes the importance of self-custody.
Self-custody, where traders maintain control of their private keys, offers an attractive alternative to entrusting assets to third parties. The rise in active self-custody crypto wallets, which surged by 47% in 2024, underscores this growing trend. Traders are seeking greater autonomy, enhanced security, and real-time insights into their crypto trading activities.
DEXs are gaining traction, with monthly trading volumes reaching all-time highs. In June 2025, the ratio between spot volumes on DEXs and CEXs reached a new peak of 27.9%. Furthermore, the decentralized exchange (DEX) to centralized exchange (CEX) futures trade volume ratio hit a new all-time high of 8% in June 2025. This figure is up considerably from the 6.84% recorded last month and from just 4.78% this time last year.
Among DEXs, PancakeSwap has emerged as a star performer, experiencing a remarkable surge in market share. Its growth is attributed to trading strategy improvements that have enhanced volumes and liquidity. Hyperliquid has also played a significant role in the rising DEX-to-CEX futures trade volume. APX Finance has contributed to this trend, recording substantial volume increases.
Despite the increasing popularity of DEXs, centralized exchanges still maintain a significant presence in the crypto market. However, spot trading volume on CEXs has fallen. Conversely, spot trading volume on decentralized exchanges rose significantly, reaching a new all-time high.
The shift towards DEXs reflects a broader trend of liquidity fragmenting away from centralized incumbents towards permissionless, on-chain venues. This transformation in how participants access and move capital across crypto markets suggests a move towards greater decentralization and user empowerment within the crypto space.
As the DEX-to-CEX ratio continues to climb, the cryptocurrency market is likely to witness further innovation and development in decentralized trading platforms. This evolution could lead to a more resilient and accessible financial ecosystem, offering users greater control over their assets and trading activities.
