Although the trading volume of futures contracts on DEX platforms has seen a strong increase, the trading volume ratio between DEX and CEX is trending downward, indicating that traders are gradually returning to centralized exchanges.
According to data from The Block, the share of futures trading on decentralized exchanges (DEX) compared to centralized exchanges (CEX) dropped to 3.26% in September, down from a peak of 5.18% in February.
This indicator measures the ratio of futures trading volume on DEX to CEX, and this downward trend suggests that users are increasingly favoring centralized exchanges.
The Block
While the 3.26% ratio is still high compared to historical data, the decline since February shows that traders tend to choose centralized platforms.
Hyperliquid has emerged as the leader in futures trading volume on DEX, with daily order values reaching $1.23 billion, accounting for 44% of the market share.
This impressive figure even allows Hyperliquid to surpass some centralized platforms like HTX and KuCoin in the derivatives market.
However, when looking specifically at Bitcoin futures contracts, Binance still dominates with a monthly trading volume of $480 billion, a figure that keeps its competitors on edge.
It should be noted that Hyperliquid's trading volume surge is partly due to the FOMO from the HYPE token airdrop program, raising the question of whether this DEX platform can maintain its large user base after the airdrop ends.
Despite the advantages of decentralization and ongoing improvements in features, DEX platforms have yet to match the convenience offered by CEX platforms.
The Block 2
Liquidity remains one of the biggest advantages of centralized exchanges, as the order book depth on major CEX platforms far surpasses that of decentralized competitors. Without strong liquidity, large trades on DEX platforms can risk slippage, reducing trading profits.
The second reason is user experience. The interface of many DEX platforms often falls short of user expectations. For new users, interacting with smart contracts and adjusting gas fees can be much more complex compared to CEX platforms, where users can place orders with simple actions.
