Crypto – Meme coins drive DEXs to $179.5 billion

Centralized crypto exchanges are gradually losing ground to their decentralized counterparts! This trend can be attributed to several factors, notably the improvement of the user experience on decentralized platforms and the growing popularity of meme coins.

Crypto: DEXs are gaining ground against centralized exchanges!

Data shows that the trading volume on decentralized platforms (DEX) has been steadily increasing in 2024. In January, the DEX volume was $133.5 billion, and it reached $179.5 billion in July, a rise of about 34%. This growth is partly due to the improved performance of crypto blockchains like Solana and Ethereum’s layer 2 solutions, which offer reduced fees and high processing capacity.

Kunal Goel, an analyst, highlighted that the growth of DEXs is also fueled by the increase in investments in meme coins and long-tail assets. These crypto assets are generally listed on DEXs before appearing on centralized exchanges, giving decentralized platforms an advantage.

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

DEX vs CEX: which is the best choice?

Decentralized exchanges (DEX) offer greater autonomy and security, allowing for transactions without intermediaries. On the other hand, centralized exchanges (CEX) are easier to use and provide better liquidity. For crypto investors, DEXs are ideal for privacy and innovation, while CEXs are better suited for beginners and rapid transactions.

Although 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 could continue as blockchain technologies keep improving and more users adopt decentralized solutions.