The Growing Preference for Decentralized Exchanges in Crypto Trading
The cryptocurrency trading landscape is evolving, with traders increasingly opting for decentralized exchanges (DEXs) over centralized exchanges (CEXs). This shift has elevated the DEX-to-CEX ratio to an unprecedented level, as highlighted in the latest report by CoinGecko. During the second quarter of 2025, DEXs experienced a 25% increase in spot trading volume, while CEXs saw a 28% decrease.
Advantages of Decentralized Exchanges
Traders are increasingly drawn to DEXs for their enhanced security and transparency. Operating without a central authority, DEXs minimize risks associated with hacks and fraudulent activities. PancakeSwap, a prominent DEX on the Binance Smart Chain (BSC), reported a remarkable 539% growth in trading volume, securing 45% of the DEX market share.
Emerging Market Trends
- The DEX-to-CEX ratio climbed to 0.23 in Q2 2025.
- PancakeSwap emerged as a leader with $392.6 billion in trading volume.
- Perpetual futures trading on DEXs reached a milestone of $898 billion.
Insights from Industry Experts
“The migration towards DEXs underscores a rising preference for trustless trading frameworks,” noted a CoinGecko analyst. This trend is further exemplified by Hyperliquid‘s dominance in the perp DEX sector, holding a 73% market share.
