It seems that centralized exchanges are going through a rough patch. June’s monthly spot trading volume on centralized platforms plummeted to $1.07 trillion, down from $1.47 trillion in May. It’s a 63.6% drop from the recent high of $2.94 trillion in December, which honestly, might have some CEX execs sweating a bit.
Bitcoin is still holding steady near its all-time highs, but let’s be real, the altcoins are just not having a great time. Most of them, including Ethereum, are still down about 40% from their peaks. The reason for the centralized exchange slump? Well, it seems to be more institutional buying of Bitcoin, while retail traders, those trusty altcoin fans, aren’t showing up in the same numbers. So, it’s kind of like the rich folks are in, and the regular folks are like “nah, not today.”
But, wait, because the real show is happening on decentralized exchanges (DEXs). DEXs saw a rise in volume, with June hitting $390 billion in trading.
That’s a nice rebound from a slow January. DEXs are now hitting new records in both spot and futures trading volumes. In fact, the ratio of DEX to CEX spot trading volume hit an all-time high of 29%. That’s right, decentralized platforms are now snagging a bigger slice of the pie.
Why DEXs Are Getting All the Love
So, what’s causing all the love for DEXs? Well, Min Jung from Presto Research thinks it's because institutional traders are flocking to Bitcoin, and retail traders are opting for DEXs due to lower fees and greater flexibility. As if that wasn’t enough, platforms like Hyperliquid are making it easier and more fun to trade on DEXs. There’s also a little bit of that "free stuff" vibe, with traders chasing airdrops and points programs, nothing wrong with that, right?
But it’s not just about the airdrops. Vincent Liu, CIO of Kronos Research, chimed in, saying DEXs are gaining traction because they offer real utility. Traders love the freedom to trade anything they want, plus the bonus of self-custody and early access to new tokens. Basically, DEXs are like the cool new club that’s gaining members fast, and who can blame them? The fees are lower, the freedom is higher, and you get to trade like a boss without the usual headaches of centralized platforms.
So, while CEXs might still be sitting pretty with institutional buying, it looks like the future of trading is heading toward decentralized platforms. It's not just a trend; it's becoming a real strategy shift. Time to learn the ropes if you haven’t already!
Anastasiia G
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