CEX's trading volume surged by an impressive 139% in the year 2024
In a significant shift in the cryptocurrency market, decentralized exchanges (DEXs) have gained traction over centralized exchanges (CEXs) in spot trading volumes and derivatives transactions, according to WuBlockchain's 2024 annual report.
The report highlights a general growth trend favouring DEXs, with CEXs exhibiting declines or cautious investor behaviour, particularly mid-2025. Major CEXs like MEXC, KuCoin, and Upbit experienced sharp drops in trading volumes, while Binance and Kraken had more moderate declines. This indicates a decreasing market share for CEXs amid growing liquidity concerns and changing investor sentiment.
On the other hand, DEXs have been gaining traction as users prefer decentralized platforms for trading due to increased scrutiny on CEXs, regulatory pressures, and a desire for more autonomous and secure trading environments. Although explicit volumes were not detailed in the provided excerpts, WuBlockchain generally reports on this shift towards DEXs as a major 2024 theme.
In terms of key players, Binance remains a leading platform on the CEX side despite volume declines, followed by KuCoin, Upbit, MEXC, HTX, and Kraken. On the DEX side, while specific top players were not listed, prominent DEX platforms historically include Uniswap, SushiSwap, and emerging decentralized protocols facilitating derivatives and spot trades. Ethereum has been the main fueling network for DEX activity, attracting massive inflows in 2024 and into 2025.
The report also indicates a gradual erosion of CEX market share in spot and derivatives trading as users and institutional investors pursue more decentralized, permissionless options that mitigate counterparty risks associated with centralized platforms. Institutions appear to be diversifying, utilizing Exchange-Traded Products (ETPs) for Bitcoin exposure while increasingly participating in DEX-based products on Ethereum and other chains.
Uniswap led DEX trading in December 2024 with a volume of $106.4 billion, followed by Pancake Swap with $96.4 billion and Raydium with $58 billion. In the CEX category, Binance took third place behind Crypto.com and Bybit, which became the second-largest CEX on the spot market. Crypto.com showed the highest growth among CEXs in 2024, with a growth rate of 960%, while Gate ranked third with a growth rate of 244%.
The total volume of cryptocurrency derivatives transactions increased by 91%, reaching $53.24 billion in 2024. Binance increased its registered user base by 47% in 2024, surpassing the 250 million mark. The total spot trading volume on centralized exchanges in 2024 was $18.38 billion, a 139% increase from the $7.68 billion in 2023. This growth trend favouring DEXs is expected to continue into 2025 and beyond.
References: 1. WuBlockchain 2024 Annual Report 2. CoinMarketCap 2024 Q3 Market Report
- The WuBlockchain 2024 Annual Report suggests a shift in the finance industry, as decentralized exchanges (DEXs) have seen growth in spot trading volumes and derivatives transactions, while centralized exchanges (CEXs) have experienced declines or cautious investor behavior.
- Technology is playing a significant role in the finance sector, with institutions pursuing more decentralized, permissionless options like Exchange-Traded Products (ETPs) for Bitcoin exposure and DEX-based products on networks like Ethereum, as users and investors seek autonomous and secure trading environments.
