CEX dominance persists despite rapid growth in DEX volumes

Despite the rise of DEXs, centralized exchanges maintain superior trading volumes and user accessibility.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Centralized exchanges (CEXs) have long dominated crypto trading, with giants like Binance and Coinbase leading the pack. Binance, for instance, boasts around $17 billion in daily trading volume, dramatically eclipsing its rivals. Meanwhile, decentralized exchanges (DEXs) like Uniswap have seen monumental growth since 2020, spanning multiple chains and raking in significant daily volumes. However, despite climbing to 20% of CEX volume by early 2024, DEXs still lag behind the colossal CEXs. But what's driving this tidal shift, and could DEXs one day close this daunting gap?