Gate Learn’s latest study, “The Evolution of Crypto: Trading Platform and Trading Volume,” examines the development of the cryptocurrency market over the past decade. It focuses on the evolving roles of centralized exchanges (CEXs) and decentralized exchanges (DEXs) in the market and their impact on trading volumes.

Key Highlights:

Rapid Growth in Crypto Trading Demand: Over the past decade, annual cryptocurrency trading volume exceeded $24 trillion, with the number of CEXs growing swiftly. Sixty-three new CEXs were added in 2018 alone, totaling over 180 today. This surge in trading demand has intensified market competition.

Market Positioning of CEXs and DEXs: Although CEXs continue to dominate the market, leveraging their extensive user base and resource advantages, DEXs have shown unique strengths in long-tail assets and cross-chain transactions. DEXs market share has increased from 0.33% in 2020 to 11.91% in 2024.

The Rise of DeFi and Market Transformation: The DeFi Summer catalyzed rapid development within DEXs, with platforms like Uniswap and Curve leading innovations. The rise of DEXs has enhanced trading efficiency and provided more options for community-driven assets, optimizing user experience.

Trading Opportunities with Real-World Assets (RWAs): As stablecoin trades now account for half of the market, the trading volume of real-world assets (RWAs) is gradually increasing, attracting traditional financial institutions such as Citibank and BlackRock to this sector. This trend offers new market opportunities for DEXs.

Challenges and Regulatory Focus: With the rapid development of DEXs, issues such as transparency, compliance, and user protection are becoming more pronounced. In the future, trading platforms must fully leverage the advantages of decentralization and long-tail assets within a compliant framework to compete with traditional finance.

Future Trends and Market Opportunities: Over the next decade, trading platforms’ competitiveness will depend on their ability to drive innovation with tokenization and RWAs, while also enhancing user experience. The roles of CEXs and DEXs in the market will continue to evolve, driving ongoing development in the cryptocurrency industry.

Gate Learn
Gate Learn is a comprehensive blockchain and cryptocurrency research platform that provides readers with in-depth content, including technical analysis, market insights, industry reviews, trend forecasts, and macroeconomic policy analysis.

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Gate.io Team
Nov 4th, 2024