Crypto – Memecoins Drive DEXs to $179.5 Billion

Centralized crypto exchanges are gradually losing ground to their decentralized counterparts! This trend can be explained by several factors. In particular, the improvement of the user experience on decentralized platforms and the growing popularity of memecoins.

Crypto: DEXs are gaining ground against centralized exchanges!

Data shows that the trading volume on decentralized exchanges (DEX) has been steadily increasing in 2024. In January, DEX volume was $133.5 billion, and it reached $179.5 billion in July, an increase of about 34%. This growth is partly due to the improved performance of crypto blockchains like Solana. But also Ethereum's layer 2 solutions, which offer low fees and high throughput.

Kunal Goel, an analyst, pointed out that the growth of DEXs is also fueled by the increase in investments in memecoins and long-tail assets. These crypto assets are usually listed on DEXs before appearing on centralized exchanges. This gives an advantage to decentralized platforms.

Despite this growth, centralized exchanges continue to dominate the overall crypto market. However, DEX market share has increased from 4.6% in February to over 7% in July 2024. This 52% increase shows that DEXs are gaining ground, even as centralized exchanges remain dominant.

DEX vs CEX: Which is the Better Choice?

Decentralized exchanges (DEXs) offer greater autonomy and security, allowing for transactions without an intermediary. In contrast, centralized exchanges (CEXs) are easier to use and offer better liquidity. For crypto investors, DEXs are ideal for privacy and innovation, while CEXs are better suited for beginners and fast transactions.

While centralized exchanges continue to play a major role in the crypto ecosystem, decentralized platforms are gaining popularity due to their flexibility, accessibility, and ability to offer unique opportunities to investors. This trend may continue as blockchain technologies continue to improve and more users adopt decentralized solutions.