Traders Rush to Decentralized Exchanges Amid Centralized Platform Disruptions and Concerns Over Asset Security

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Traders Rush to Decentralized Exchanges Amid Centralized Platform Disruptions and Concerns Over Asset Security

Bitget-RWA2025/11/03 13:04

By:Bitget-RWA

- DEX trading volume hit $613.3B in October, a 22.7% surge led by Uniswap ($170.9B) and PancakeSwap ($101.9B). - Market volatility and CEX outages (e.g., dYdX’s $462K compensation plan) drove traders to DEXs for self-custody and yield strategies. - Stablecoin transactions ($2.82T) and new DEX projects like Terminal Finance ($280M pre-launch liquidity) highlight decentralized finance’s growth. - Binance retained CEX dominance with $810.4B volume, but DEXs now account for 19.84% of total exchange activity. -

Data from DefiLlama and

The Block

show that decentralized exchanges (DEXs) reached a record-breaking $613.3 billion in trading volume in October, up 22.7% from September’s $500 billion. This milestone highlights a significant shift in the cryptocurrency landscape, as more traders turn to non-custodial platforms in response to market turbulence and tighter regulations.

Uniswap

was at the forefront, handling $170.9 billion in trades—an increase from $106.5 billion in September—while

PancakeSwap

followed with $101.9 billion, marking a 27.7% rise from the previous month.

Traders Rush to Decentralized Exchanges Amid Centralized Platform Disruptions and Concerns Over Asset Security image 0

This spike in DEX activity happened alongside a broader downturn in the market, including Bitcoin’s sharp fall to $104,600 on October 17. Many traders moved to DEXs for liquidity mining, yield opportunities, and self-custody options, especially amid worries about centralized exchange (CEX) failures. For example,

dYdX

came under fire after proposing a $462,000 compensation plan for users affected by an eight-hour network outage during the October 10 market crash, according to

Cointelegraph

. Meanwhile, Binance maintained its lead among CEXs, recording $810.4 billion in trading volume in October, up from $636.5 billion in September. Still, DEXs now represent 19.84% of all exchange volume, as reported by

Yahoo Finance

Ethereum’s stablecoin sector also experienced rapid expansion, with transaction volume hitting $2.82 trillion in October—a 45% increase over September.

USDC

and

USDT

were the main drivers, contributing $1.62 trillion and $895.5 billion, respectively. Stablecoin protocols accounted for 65–70% of daily crypto protocol revenues, surpassing lending services and DEXs, according to

Bitcoin.com

New DEX initiatives are taking advantage of this momentum. Terminal Finance, a yield-oriented DEX developed by

Ethena

, attracted $280 million in pre-launch liquidity, reflecting strong interest in yield-generating stablecoin trades. CEO Sam Benyakoub pointed out DEXs’ inherent strengths, such as predictable smart contract execution and the elimination of custodial risks. In other news, Binance founder Changpeng Zhao (CZ) acquired $2 million worth of

ASTER

tokens, causing the DEX token’s price to jump 20% despite a recent 11% decline.

The increase in the DEX-to-CEX trading volume ratio to 19.84% signals rising confidence in decentralized platforms, especially as on-chain activity slows. In October, Ethereum’s daily active addresses dropped by 24% to 363,000, and its MVRV ratio fell to 1.50, suggesting a cooling market. Analysts told Yahoo Finance that renewed volatility from global events or geopolitical issues could further drive DEX usage.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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