Data shows that the trading volume ratio of the decentralized exchange (DEX) to the centralized exchange (CEX) has increased.
In response to the trend, the founder of Your Crypto Community Duo Ninestated, “DEXs eat up CEX’s market share.” He attributed this to “more regulation”, which meant “DEX’s explode.”
Sign out, he wrote, “The future is decentralized.”
The chart below shows the DEX to CEX trading volume ratio since January 2019. The ratio started to increase around May 2020, as the market entered the “DeFi Summer”, the period when DeFi applications supported yield farming, lending and lending, for the first time has taken off, to peak at 16% by September 2020.
The ratio reached a new peak of around 17% in January 2022. Likely because participants realized that the top of the market had been reached, a general downturn ensued, causing the ratio to drop in September 2022, reaching a low of 8%.
Since then, the ratio has been on the rise, with a sharp acceleration in April 2023 propelling it past its previous peak to its current level of 22%.
Crypto Sentiment
on June 1 CryptoSlate reported a significant decline in daily CEX trading volume to levels last seen in late 2020, indicating market apathy.
Analysis of the Total Value Locked (TVL) in DeFi protocols for comparison showed a slight increase to a peak of $53 billion on April 16. Nevertheless, the TVL chart has shown a relatively flat pattern since the beginning of the year.
Rising DEX to CEX trading volume ratio is supported by declining CEX activity and flat TVL in DeFi protocols. However, rather than a flight to DEXs and a flood of new DEX users, the flat TVL pattern indicates that DEX users are holding their own amid market uncertainty.
The post Decentralized to Centralized Trading Volume Ratio Sets a New All-Time High at 22% appeared first on CryptoSlate.
