Centralized exchanges (CEXs) continue to dominate the cryptocurrency trading landscape, with Binance leading the pack by a wide margin. Binance’s impressive $17 billion in 24-hour trading volume on March 25 solidifies its position as the top exchange in the industry. Offering nearly 1,868 markets and listing 479 coins, Binance consistently captures a significant share of global trading volume, often exceeding 50% of all crypto spot volume.
While Binance reigns supreme, other major CEXs like Coinbase, OKX, Bybit, Bitget, and MEXC also recorded substantial trading volumes ranging from $2.20 billion to $2.8 billion. The top 10 CEXs collectively account for the majority of crypto trading activity, with Binance alone representing a significant portion, ranging from 34% to 60% of total spot volume on any given day.
CEXs vary in their listing strategies, with some exchanges like Gate.io and MEXC listing over 4,000 markets each, catering to the long tail of digital assets. This approach can boost reported volume as traders speculate on a wide range of tokens. In contrast, exchanges like Coinbase focus on quality and liquidity, offering fewer trading pairs. Binance strikes a balance by listing numerous coins while concentrating volume on top pairs like BTC/USDT.
Despite the plethora of markets available on CEXs, the majority of trading volume comes from a select few top pairs such as BTC, ETH, and popular altcoins like Solana and XRP against USDT or fiat currencies.
On the other hand, decentralized exchanges (DEXs) have experienced significant growth since 2020, offering a diverse range of trading models and operating across multiple chains. The top 10 DEXs by daily volume include Ethereum-based exchanges and platforms on alternative Layer-1s and Layer-2s.
Stabble, a Solana-based stablecoin DEX/aggregator, recorded the highest trading volume on March 25, surpassing $6 billion. The platform specializes in low-slippage stablecoin swaps, with a focus on USDT/USDC trades that accounted for a substantial portion of its volume. Uniswap v3, the flagship AMM on Ethereum, saw $600 million to $700 million in 24-hour volume, offering concentrated liquidity pools for various trading pairs.
While DEXs have made significant strides in the market, they still lag behind CEXs in terms of trading volume. The liquidity on DEXs is spread across multiple chains, with the largest DEX handling under $1 billion in daily volume on average. Despite the growth of DEXs, CEXs continue to dominate the market with their established user bases, accessibility, and liquidity.
In conclusion, CEXs maintain their lead in trading volume due to their large user pools, established trust, and advanced trading features. DEXs, on the other hand, excel in asset variety, innovation, and permissionless access. While the gap in volume between CEXs and DEXs is narrowing, both types of exchanges play crucial roles in the evolving cryptocurrency ecosystem, driving competition and innovation in the industry.