CEXs vs Perp DEXs: Who Will Win? Experts Weigh In

Core Insights - The rally in exchange tokens is driven by stronger institutional demand and regulatory clarity, indicating a shift beyond short-term hype [1][7] - Centralized exchanges (CEXs) face competition from perpetual decentralized exchanges (perp DEXs), raising questions about their ability to maintain market share [1][6] Market Dynamics - The trading volume for Aster reached over $100 billion in the past week, indicating significant activity in the perp DEX market [3] - Hyperliquid has established itself as a leader among perp DEXs, showcasing a hybrid model that combines features of both CEXs and DEXs [4][5] Institutional Interest - Institutional investors have shown renewed interest in exchange-based crypto tokens, which has positively impacted their performance [7][8] - CEXs continue to dominate in liquidity, fiat on- and off-ramps, and compliance, making them essential for institutional investors [8][13] Hybrid Models - Hybrid models are emerging as a viable path forward, blending the strengths of CEXs and DEXs to address their respective weaknesses [12][14] - Experts agree that the future of trading may involve a combination of CEXs and DEXs, rather than a clear winner [17] Volume Trends - The DEX-to-CEX spot volume ratio has increased significantly, with perp DEXs capturing around 30-35% of the market, indicating a structural change in trading behavior [15][16]