Comparison of DEX and CEX Market Share Surges Solana Foundation Unprecedented DeFi Development Speed
Data shows that the ratio of DEX (decentralized exchanges) to CEX (centralized exchanges) spot trading volume is reaching a historical high. The DeFi ecosystem is developing at an unprecedented speed, and the Solana Foundation acknowledges this, stating that choosing the right blockchain will be a key factor for developers.
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DEX Market Share Reaches New High, Raydium Stands Out
Solana Foundation: DeFi is Expanding Rapidly
Current Challenges Faced by DeFi
Diversification is Fueling DeFi Variability
The ratio of spot trading volume between DEX and CEX has reached a one-year high, indicating that DEX is gradually gaining significant market share in the cryptocurrency market.
The chart above shows that DEX’s spot trading volume share compared to CEX has reached 13.76%, surpassing last year’s peak of 13% in May.
This change has occurred while DEX’s monthly spot trading volume has been declining for four consecutive months. Among the various DEX platforms, Raydium has shown the most impressive performance, with its market share growing from 7.93% since the beginning of the year to 21%, taking away a portion of Uniswap’s dominant position in the market.
On the CEX side, Crypto.com and Bybit have emerged as leaders, competing fiercely in the North American market and global offshore exchanges.
According to the recent report by the Solana Foundation, they have made similar findings, stating that despite the challenges faced by DeFi, including financial instability and regulatory pressure, it continues to create new markets and penetrate existing crypto markets at an unprecedented speed.
Having evolved from borrowing and yield generation to the integration of point systems and staking, the Solana Foundation attributes the explosive development of the DeFi ecosystem to the introduction of various stablecoins, considering them as one of the main “killer applications.”
However, they also acknowledge that as DeFi expands, the obstacles faced by projects and developers are becoming more apparent, including:
– Unclear regulatory environment (led by U.S. authorities’ hostile attitude)
– Unstable market demand (highly volatile market sentiment)
– Difficulties in sustaining user incentives
– Information security risks
At the same time, the Solana Foundation emphasizes that the technological differences between blockchains have led to the unique nature of applications and intensified competition among users:
In this regard, blockchains with a large existing user base and the lowest associated costs will attract completely different developers.
Nevertheless, the Solana Foundation remains positive about the recent development of DeFi, stating that diversification and the development of super applications are accelerating the variability of the DeFi ecosystem.
They highlight Solana Actions and Blinks, which simplify user experiences, and TON, which integrates the advantages of social media, as clear examples.
Finally, the Solana Foundation compares the recent development of DeFi to being “fast and dramatic,” stating that it is creating new markets and penetrating existing ones.
The trends indicate that expanding integration with existing Web2 infrastructure, continuous improvement of intuitive user experiences, promoting community interactions, and devising methods to enhance user loyalty are all factors that can effectively contribute to the success of DeFi projects.
They also emphasize, “As the challenges become more severe and competition among developers intensifies, the choice of blockchain becomes particularly important.”
CEX: Centralized Exchange
DeFi: Decentralized Finance
DEX: Decentralized Exchange
Solana
