The Block
Data shows that the ratio of decentralized exchanges (DEX) to centralized exchanges (CEX) spot trading volume is reaching a new high. The DeFi ecosystem is developing at an unprecedented speed, and the Solana Foundation agrees, stating that choosing the right blockchain will be crucial for developers.
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DEX Market Share Reaches New High, Raydium Stands Out
Solana Foundation: DeFi Is Rapidly Expanding
Current Challenges and Diversification in DeFi
The ratio of DEX spot trading volume to CEX spot trading volume has reached its highest point in a year, indicating that DEX is gradually gaining importance in the cryptocurrency market.
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The above chart shows that DEX’s spot trading volume share compared to CEX has reached 13.76%, surpassing the previous high of 13% in May last year.
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This change occurred while DEX spot trading volume had been declining for four consecutive months. Among them, Raydium has shown the most remarkable market share growth, from 7.93% at the beginning of the year to 21%, taking a portion of Uniswap’s dominant position in the market.
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In terms of CEX, Crypto.com and Bybit have stood out in the fierce competition in the North American and global offshore exchange markets, respectively.
(
Exchange S2 Market Report: Crypto.com Performs Exceptionally, Bybit Is the Biggest Winner Since FTX Collapse?
)
The Solana Foundation also made similar findings in its recent report, stating that despite facing challenges such as financial instability and regulatory pressure, DeFi is creating new markets and penetrating existing cryptocurrency markets at an unprecedented speed.
Having evolved from lending and yield to a point system and staking, the Solana Foundation attributes the explosive development of the DeFi ecosystem to the introduction of various stablecoins, calling them one of the main “killer applications.”
However, it also acknowledges that as DeFi expands, the obstacles faced by projects and developers are gradually becoming apparent, including:
Unclear regulatory environment (led by U.S. authorities’ hostile attitude)
Unstable market demand (highly volatile market sentiment)
Difficulties in sustaining user incentive measures
Information security risks
At the same time, the Solana Foundation emphasizes that the technical differences between blockchains have led to the unique characteristics of applications and intensified competition among users:
In response to this, blockchains with a large user base and the lowest associated costs will attract completely different developers.
However, the Solana Foundation remains positive about the recent development of DeFi, stating that diversification and the development of super applications are accelerating the variability of the DeFi ecosystem.
It emphasizes that Solana Actions and Blinks, which simplify the user experience, and TON, which integrates the advantages of social media, are evident examples.
(
EthCC | The Return of Payment Narrative! Chairman of the Solana Foundation: PayFi Will Rewrite the Financial Industry with “Buy Now, Pay Later”
)
Finally, the Solana Foundation compares the recent development of DeFi to being “fast and dramatic,” stating that it is creating new markets and penetrating existing ones:
The trend indicates that expanding integration with existing Web2 infrastructure, continuous improvement of intuitive user experience, promoting community interaction, and devising methods to enhance user loyalty are all factors that can effectively lead to the success of DeFi projects.
And it adds, “As the current challenges become more severe, competition among developers will intensify, making the choice of blockchain particularly important.”
CEX
DeFi
DEX
Solana
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Further Reading
Exchange S2 Market Report: Crypto.com Performs Exceptionally, Bybit Is the Biggest Winner Since FTX Collapse?
Bitfinex Unexpectedly Halts Trading, Team: Due to Abnormal Performance Maintenance.