Can DEX Replace CEX as the Future of Crypto Trading?

The rise of blockchain technology and the burgeoning popularity of cryptocurrencies have ignited a fresh wave of decentralization in finance – DeFi. DEX, a significant component of this emerging field, is witnessing rapid growth in line with the overall DeFi ecosystem. Its current market value stands at USD 15.5 billion, accounting for approximately 35% of the total DeFi market value.

DEX operates in a decentralized manner, providing a platform for users to trade directly and securely. This is the key distinction from CEX. As scandals involving CEX continue to surface and global regulatory efforts intensify, distrust and concern towards CEX have been escalating among users. According to data from CoinGecko, DEX grew by 33.4% in Q1 2023, while CEX only saw a 16.9% growth rate. DEX’s growth rate is almost double that of CEX.

Given these developments, will DEX potentially usurp CEX’s dominant position in the future?