Decentralized Exchanges (DEXs) Surpass Centralized Exchanges (CEXs) in Trading Efficiency
$TRUMP, a memecoin launched by Donald Trump on Solana on January 17, 2025, peaked at over $14.5 billion in market cap within 24 hours on DEXs like Raydium and Orca, becoming the second-largest memecoin after Dogecoin. Major CEXs listed it days later, missing out on substantial trading activity. This incident underscores the advantages of DEXs over CEXs:
- Faster transactions
- Higher liquidity
- More volatility
In just 72 hours, Solana's DEX recorded $28 billion in trading volume, primarily driven by $TRUMP and $MELANIA tokens. DeFi has evolved, with user-friendly mobile applications enhancing accessibility. CoinGecko's co-founder Bobby Ong noted that:
- DEXs may increasingly replace CEXs due to superior user experience.
- Top 10 DEXs achieved $1.76 trillion in trading volume in 2024.
- Solana surpassed Ethereum for DEX trading volume for the first time.
Ong highlighted challenges faced by CEXs, particularly concerning regulatory issues in various Southeast Asian markets. CEXs are struggling to maintain relevance as users gravitate toward DEXs, which offer immediate access to trading without bureaucratic delays. In regions where traditional investment options are limited, crypto fills a gap, appealing to tech-savvy youth seeking financial opportunities.
As DEXs continue to thrive, they provide unrestricted access to financial opportunities, allowing users to engage quickly. The trend suggests that CEXs must adapt or risk losing market share to decentralized alternatives.