Centralized crypto exchanges allow many newcomers to easily enter the cryptocurrency market. Enthusiasts have been using decentralized exchanges (DEXes) for over a decade. DEXes can be difficult to use if you do not have any experience with the world of blockchain. However, many advantages of working in a decentralized environment offset the challenges of onboarding.
While there is some competition between DEXes and CEXes, they ultimately serve the same goal very differently. Many DeFi investment strategies revolve around DEXes as they offer a wide range of tools to investors interested in self-custody.
Decentralized and centralized trading platforms allow users to swap their assets for other digital assets or fiat currencies. The biggest CEX in the world is Binance. As of March 2025, it has a 57.7% market share with spot market monthly volume exceeding $554 billion.
Compare it to the biggest Decentralized Exchange UniSwap. The protocol has over $4.16 billion locked in liquidity pools. Daily volumes rarely reach $1 billion. A record-setting 24-hour volume was reached on January 20. The DEX processed over $8.4 billion worth of transactions. So far, Uniswap has generated over $4.39 billion in revenues.
Let’s compare some other numbers between the two.
| Exchange | DEX Uniswap | CEX Binance |
| 30-day trading volume (March) | $48.8 billion | $553 billion |
| Peak 24-hour volume | $8.4 billion | $76 billion |
| Monthly active users | 14.4 million | 29.5 million |
| Cumulative revenues (3 years) | $2.57 billion | $48.8 billion |
| Accessible digital assets | 1,199 | 401 |
| Accessible currency pairs | 1,425 | 1,397 |
The biggest reason why many investors flock to Binance is the convenience of using the platform. It is designed to simplify the investment process for newcomers. With a strong focus on easy onboarding, quick banking, and user experience, it manages to tightly hold its massive market share.
In terms of numbers, many CEXes dwarf Uniswap despite it being the biggest DEX in the DeFi ecosystem. Problems with liquidity in DeFi platforms and various security issues prevent mass adoption. The implications of regulatory changes for DeFi and CeFi trading platforms are still unclear as the DeFi sector remains in a dark spot. The absence of consumer protection and appealing insurance options also negatively impacts the usability of DEXes.
In 2024, one of the most important trends in the DeFi ecosystem was the overall growth of the number of unique wallet addresses interacting with the Ethereum network. In December, it reached over 20 million, indicating an increase in interest from individual and institutional investors.
One of the most compelling arguments against centralization is the inability of many centralized institutions to provide absolute transparency. External audits and regular reports from CEXes are welcome, but they are insufficient to sow the seeds of trust in all cryptocurrency investors. Since all CEXes take your assets into custody, you have to rely on their integrity.
Self-custody is a relatively novel approach to handling finances. The DeFi ecosystem uses smart contracts. These are tiny programs operating on blockchain and executing certain actions when conditions for them are met. Since they do not require any intervention from humans and can be reviewed by anyone, transactions occur in a trustless and permissionless manner. All DeFi users are equal and don’t have to worry about counterparty risks or the integrity of intermediaries.
While many experts say that the environmental aspects of blockchain technologies in asset exchange should be considered an advantage, it is not something that we should be concerned with. Improvements in energy consumption efficiency will be miniscule if the ecosystem fails to attract users and create a compelling alternative to traditional markets and centralized financial institutions.
Several important factors have to be considered before we can make assumptions about the prospects of DEXes and CEXes in the foreseeable future. The whole cryptocurrency industry must solve some crucial challenges to bring in more users.
Here are some important factors to consider:
DEXes have to solve at least some of these issues. Creating a solid regulatory framework, preventing AI traders from taking over, and elevating technological standards should be enough to attract a new wave of capital holders to the ecosystem.
To round up the discussion, we want to give you a comprehensive comparison between leading DEXes.
| Exchange | Uniswap | Pancakeswap | Curve DEX |
| Supported chains | 34 | 9 | 21 |
| TVL | $4.13 billion | $1.72 billion | $1.69 billion |
| Liquidity pools | 3,882 | 281 | 554 |
| Average APY | 31.2% | 38.54% | 5.29% |
| Monthly revenues | $92 million | $211.5 million | $3.6 million |
| Monthly volume | $78.37 billion | $81.9 billion | $10.8 billion |
| Monthly active users | 14.4 million | 2.4 million | 35.7 thousand (confirmed) |
These are impressive numbers for an ecosystem that has been around for just half a decade. However, DEXes and other decentralized protocols must step up their game to ensure the long-term success of the sector.
The role of user education in choosing a platform is critical. With over 1,628 protocols across over 100 chains in the category of DEXes, it is close to impossible to make a good choice without tips from experienced veterans. We strongly suggest doing your own research and learning from knowledgeable people before making a move in the DeFi ecosystem.
You can also work with reliable platforms offering expert-level insights. Rivo and its yield marketplace can be extremely useful for DeFi investors seeking solid investment strategies. Rivo does your due diligence and showcases only the best strategies that can be integrated in any portfolio based on investor preferences and risk style! Check out excellent investment instruments now!
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