CEX Trading Volume Hits 9-Month Low as DEX Market Share Surges to Nearly 30%

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The crypto trading landscape is undergoing a significant transformation. In June 2025, centralized exchange (CEX) spot trading volume dropped below $1.1 trillion—marking a 9-month low and just 40% of its peak from six months earlier. At the same time, decentralized exchanges (DEXs) captured nearly 30% of the total spot market share, signaling a growing shift toward trustless, user-controlled trading environments.

This structural change reflects deeper trends: institutional dominance, declining retail activity, rising skepticism toward centralized platforms, and rapid advancements in DeFi infrastructure. As users increasingly prioritize control, security, and transparency, the momentum behind decentralized finance continues to build.

CEX Spot Volume Plummets to 9-Month Low

According to a July 2 report by The Block, centralized exchanges recorded only $1.07 trillion in spot trading volume during June—a 27% drop from May and a staggering 63.6% decline from the $2.94 trillion high seen in December 2024. This marks the lowest monthly volume for CEXs in over nine months.

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Several factors contribute to this downturn:

As confidence in third-party custodians wanes—especially in the aftermath of past exchange collapses—investors are migrating assets off centralized platforms and into non-custodial wallets or DEXs.

DEX Market Share Jumps to Nearly 30%

While CEX volumes contract, decentralized exchanges are experiencing unprecedented growth. In June 2025, DEX spot volume reached $390 billion, representing 29% of total crypto spot trading activity—a new all-time high according to data from DefiLlama.

This surge underscores rising demand for permissionless, non-custodial, and transparent trading protocols. Platforms like Uniswap, Curve, and PancakeSwap have seen increased liquidity and user engagement, driven by:

The shift isn’t just about ideology—it's also about efficiency. Modern DEXs now offer competitive slippage rates, faster execution, and deeper liquidity pools than ever before.

Institutional Demand Rises as Retail Activity Cools

A key driver behind changing market dynamics is the growing influence of institutional players. Analyst Min Jung from Presto Research notes that the launch of Bitcoin spot ETFs and corporate treasury adoption have shifted market control toward large-scale investors.

Bitcoin holdings by public companies and ETFs continue to rise, absorbing long-term supply and reducing circulating liquidity. Meanwhile, retail interest appears to be cooling:

Furthermore, Bitcoin concentration is increasing. Long-term holders are moving BTC into cold storage or self-hosted wallets, while CEX reserves have declined by 14% since the start of 2025—a clear signal that users are prioritizing asset control over convenience.

“The tug-of-war between centralization and decentralization is an inevitable phase in market maturation. As liquidity seeks safer and more efficient outlets, the power is gradually shifting back into users’ hands—one private key at a time.”

Trust Erosion Meets Technological Advancement

User migration from CEXs to DEXs isn’t solely driven by technology—it's also a response to eroding trust.

The collapse of FTX and ongoing regulatory actions by agencies like the U.S. Securities and Exchange Commission (SEC) have heightened concerns about transparency, solvency, and fund safety on centralized platforms. These events have accelerated the adoption of trustless alternatives where users retain full custody of their assets.

At the same time, technical improvements have made DEXs more accessible:

Combined with incentive models like trading rewards and protocol-owned liquidity, these innovations are drawing both retail traders and professional market makers into the DEX ecosystem.

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Frequently Asked Questions (FAQ)

Q: What caused the drop in CEX trading volume?
A: A mix of reduced market volatility, lower retail participation, institutional accumulation of Bitcoin, and declining trust in centralized custodians following past exchange failures.

Q: Why are DEXs gaining market share now?
A: Advances in Layer-2 scaling, improved user experience, lower fees, and strong incentive programs have made decentralized trading more efficient and appealing to a broader audience.

Q: Is the rise of DEXs a threat to centralized exchanges?
A: While DEXs are capturing significant ground—especially in spot trading—CEXs still dominate in derivatives, fiat onboarding, and institutional services. However, continued innovation in DeFi could challenge their long-term dominance.

Q: Can DEXs handle high-frequency or large-volume trades effectively?
A: With smart order routing and deep liquidity pools across major protocols, top DEXs can now support large trades with minimal slippage—especially when leveraging Layer-2 networks.

Q: Are there risks associated with using DEXs?
A: Yes. Risks include smart contract vulnerabilities, impermanent loss for liquidity providers, potential scams (e.g., fake tokens), and less regulatory protection compared to CEXs.

Q: How do airdrops influence DEX usage?
A: Airdrop farming has become a major driver of user activity. Traders often engage in specific protocols to earn future token distributions, boosting short-term volume and liquidity.

The Road Ahead: Decentralization as the New Default

The data speaks clearly: decentralized trading is no longer a niche. With DEX spot volume accounting for nearly 30% of the global total, trustless exchange mechanisms are becoming a core component of the crypto economy.

Core keywords driving this trend include:

Regulatory clarity, further scaling innovations, and enhanced security practices will determine how fast this transition accelerates. But one thing is certain—the balance of power is shifting from intermediaries to individuals.

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As users reclaim ownership through private keys, multi-chain interoperability, and non-custodial tools, the vision of an open, permissionless financial system is moving closer to reality. The era of user-centric finance has begun.