In January 2025, the trading volume on decentralized exchanges surpassed 20% of the total volume on centralized platforms for the first time, which may indicate shifting trends in the crypto industry.
Growth of DEX Trading Volume
Data from The Block and DefiLlama showed that the proportion of trading volume on decentralized exchanges crossed the 20% mark. These figures are based on incomplete January data and could change by February. This achievement is the highest since May 2023, when the ratio hit 14% amid a market recovery after the challenges of 2022.
Impact of Token Launch Platforms
Launchpads like Pump.fun have incentivized investor appetite for low-cap virtual assets, which typically debut on DEXs. Major centralized exchanges such as Binance, Coinbase, and Kraken, while providing convenient access to digital assets, are slow to list new tokens.
Future of Decentralized Platforms
Decentralized platforms like Uniswap continue to play a significant role in crypto trading. These exchanges align more closely with the decentralized ethos and support token launches without restrictions. Since the start of the year, decentralized exchanges have generated nearly $10 billion in trading volume.
Surpassing 20% in total trading volume on DEXs may indicate changes in market participant behavior and ongoing interest in decentralized platforms.
