DEX Volumes Surge Past $1 trillion Amid Investor Shift From CEXs

Core Insights - Trading activity on decentralized exchanges (DEXs) reached a record high of over $1.36 trillion in October, surpassing the previous peak of $759 billion in August, indicating a significant shift towards on-chain finance [1][2] Group 1: Market Performance - Hyperliquid led the perpetual DEX market with approximately $299 billion in trading volume for October, followed closely by Lighter at $265.4 billion and Aster at $259.9 billion [2] - The share of DEX to centralized exchange (CEX) spot trade volume has more than doubled from under 10% last year to over 20% projected for 2025, reflecting a migration of traders towards decentralized platforms [3] Group 2: Factors Driving Growth - The increase in trading volume is attributed to improved platform interfaces and incentives, such as airdrops and points programs, which have attracted retail traders [4] - Structural shifts in the market, including scandals involving centralized exchanges and heightened regulatory scrutiny, have led traders to perceive DEXs as safer alternatives that offer better custody and access to new tokens [4] Group 3: Market Dynamics - The surge in trading volume was partly driven by approximately $20 billion in forced liquidations of leveraged positions, triggered by geopolitical comments regarding tariffs, which caused a sell-off in risk assets [6] - CoinShares reported that the resulting market turbulence led to a record weekly trading volume exceeding $53 billion in regulated crypto investment products, such as ETFs [7]