According to Golden Finance, a major change has occurred in the cryptocurrency market. The share of spot trading volume on decentralized exchanges (DEXs) rose to 25% in May, successfully setting a new historical record and approaching the market share of centralized exchanges (CEXs) for the first time. This leapfrog growth marks that the cryptocurrency trading ecosystem is undergoing profound changes.
Data shows that the total trading volume of the entire DEX field soared to 410.2 billion US dollars in May. Among numerous DEX platforms, PancakeSwap stands out the most, with a trading volume of up to 171.6 billion US dollars, firmly holding the top position. Following closely behind are Aerodrome and PumpSwap, both with monthly transaction volumes approaching 15 billion US dollars, and they also hold significant positions in the market. PancakeSwap, as a leader in the DEX field, has complex reasons behind its high trading volume. On the one hand, it provides initial liquidity support for numerous emerging projects. Many newly launched cryptocurrency projects choose to conduct their first transactions here, attracting a large number of early investors and traders.
Meanwhile, its trading interface is simple and easy to use. For beginners who are just getting started with cryptocurrency trading, they can quickly get the hang of it, which greatly expands its user base. Platforms like Aerodrome and PumpSwap have attracted a group of investors who pursue differentiated trading experiences with their unique trading pair Settings and innovative trading mechanisms. For instance, they have launched some combination trading pairs of popular cryptocurrencies and tokens of niche high-quality projects, providing investors with more diverse investment options.
The Block reported that Simon Kim, the CEO of Hashed, expressed profound insights on this phenomenon. He pointed out that the significant increase in the proportion of DEX spot trading volume this time is by no means merely a simple numerical change in market share. It reflects that the entire cryptocurrency trading market is undergoing a profound transformation from a centralized model to a decentralized one. Simon Kim further predicted that, based on the current development trend, DEX is expected to surpass CEX in 2028 and will dominate the cryptocurrency trading market by 2030. He emphasized that DEX’s current achievements are mainly attributed to multiple factors. At present, the meme coin craze is prevailing. A large number of meme coins have been launched on DEX platforms, triggering a frenzy of pursuit by investors and greatly boosting the trading volume of DEX.
Meanwhile, with the continuous advancement of blockchain technology, the threshold for using wallets has been continuously lowered, enabling ordinary users to more conveniently access DEX through their wallets for transactions. In addition, in recent years, some CEX platforms have witnessed negative incidents such as security vulnerabilities and misappropriation of funds, which has led to a continuous decline in users’ trust in CEX and their shift to DEX platforms with higher security and autonomy. Just as Simon Kim said, “DEX is the true embodiment of the spirit of blockchain.” It eliminates the intermediary institutions in traditional financial transactions, enabling both parties to conduct point-to-point transactions directly. This not only enhances transaction efficiency but also ensures users’ absolute control over their assets.
As the market share of DEX continues to expand, its impact on the entire cryptocurrency ecosystem will also become increasingly profound. In the future, we may witness the formation of a more decentralized, fair and transparent cryptocurrency trading market.
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