Will Dex's Dominate the Cex's in near future?

[Lasky366]

 Trading volume on Decentralized exchange Uniswap overexceeded $250 mln, during the yesterday's session. So that approached to the score of Centralized Leading Exchanges.

           According to the Bitwise, where score is most trustful, the trading volume of Uniswap even surpassed such leading exchanges as Kraken, Bitfinex & Bitstamp.

[joniboini]

They will if atomic swap is possible. DEX currently lacks the abilities to exchange between multiple chains, so you're stuck with tokens or pegged-tokens, which is not a great solution for long-term trading. Not to mention the hacking risk that's hovering those dexes.

[LeGaulois]

@Lasky366

The column on the right is supposed to include the volumes of fiats? Because if we include them the actual volumes are much larger.
Anyway, even if DEXs get a more significant market in the future, I believe it will remain minimal. Kind of like with GNU/Linux.

Also, I had read on Uniswap, since anyone can create a token it seems some people tend to impersonate Defi protocols. They were forced to publish a warning about ERC-20 token pairings. Maybe the number of people people who fall into it explains it?

[grizmoblust]

 Trading volume on Decentralized exchange Uniswap overexceeded $250 mln, during the yesterday's session. So that approached to the score of Centralized Leading Exchanges.

           According to the Bitwise, where score is most trustful, the trading volume of Uniswap even surpassed such leading exchanges as Kraken, Bitfinex & Bitstamp.

Uniswap is a decentralized exchange that makes me feel very surprised because since Defi projects appeared in this market, this is the exchange that is most interested by many investors. I think there will be a lot of good Defi projects listed here in the near future and this is your chance to choose to invest. However, be careful as the liquidity at Uniswap is still very bad and not every coin can help you make money here.

[Coin_trader]

They will if atomic swap is possible. DEX currently lacks the abilities to exchange between multiple chains, so you're stuck with tokens or pegged-tokens, which is not a great solution for long-term trading. Not to mention the hacking risk that's hovering those dexes.

This is the same reason why DEX growth is not exponential. They are limited on a single chain trading. The only DEX that showing a good result was Uniswap due to its liquidity pool feature and also DeFi projects that consistently sprouting there. Besides that, Other DEX like IDEX are already left behind due to liquidity issue in the exchange. I believe the majority volume of all DEX are currently from Uniswap alone. Atomic swap or some other cross chain feature exchange will be the next big thing on Exchange industry.

[TheUltraElite]

Most users who have come from a traditional background of stock, commodity trading would prefer to go for a CEX. If you are verified user on a CEX you would use that only comparing the problem with DEX of sudden exit scam if the team is anonymous. These are inherent risks of a DEX over a CEX. Just because it allows a decentralized approach does not mean it is going to be a legit operation.

Many scammers have used the veil of decentralization of steal money too.

Even the users who have got into speculative asset class trading would say no to DEXs at first sight because of lack of liquidity and the problem of not having enough coins to exchange too. I was using Uniswap and wanted bitcoin in return of my shitcoin But I only got another altcoin (ETH) as option.

[Wexnident]

It depends? I mean, most people wouldn't even bother with Bitcoin's anonymity, they just want the quick transactions part of it, hence them bothering to use CEX instead of DEX. Plus, most of them would rather be with the more secure one, one that's backed by something instead of something that they themselves need to secure. Ofc, this goes against what Bitcoin really is, but nothing we can do about it tbh. In addition, most people who enter Bitcoin aren't really bothered by the KYC's of CEX in addition and are probably just using Bitcoin to trade or to hodl in the long term. Its anonymity is ignored by a large group of people who use Bitcoin, which is why DEX wouldn't rise up. Not to mention the lack of liquidity most DEX has compared to CEX.

[target]

DEX will not really dominate, there will still people not going to try it, after all, there is more benefit given by CEX.
The DEX though had established themselves especially the Uniswap which is heavily used these days.  Its easy to use and NO kyc too which one would prefer to use than DEX. Its best to just use DEX when you know that sooner the database of these CEX can be accessed by governments.

[GreatArkansas]

DEX will not really dominate, there will still people not going to try it, after all, there is more benefit given by CEX.
(....)

This is also on my mind. Like, even Decentralized Exchange(DEX) will dominate or not, these two types of exchange will remain. Because we can't force people to use Decentralized Exchanges(DEX) or centralized. We all have different want to achieve for using exchanges, or different result.
This is like also comparing a motor cycle to the car which, you can both reach the destination but on different ways or different medium used.

[gentlemand]

Nope. Never.

I hope they improve to the point where they're a viable choice for those who are inclined that way, but most people want their hand held and someone to moan to. That means centralised exchanges will get bigger and bigger so even if you would prefer to go decentralised the volume and liquidity of the centralised option will be too much temptation to resist.

[Jating]

Nope. Never.

I hope they improve to the point where they're a viable choice for those who are inclined that way, but most people want their hand held and someone to moan to. That means centralised exchanges will get bigger and bigger so even if you would prefer to go decentralised the volume and liquidity of the centralised option will be too much temptation to resist.

I agree, traders, specially newbies are very naive and would rather used centralised exchanges because that's what they learn from the market itself. But if you would have to look at it centralised exchanges are prone to hacks and lost of funds.

And then you will hear around those newbies bitching around when they get hacks or something went wrong, i.e., then can't withdraw. But it won't stop those noobs from using them not now, not when the market goes on another bull run.

[gentlemand]

I agree, traders, specially newbies are very naive and would rather used centralised exchanges because that's what they learn from the market itself. But if you would have to look at it centralised exchanges are prone to hacks and lost of funds.

And then you will hear around those newbies bitching around when they get hacks or something went wrong, i.e., then can't withdraw. But it won't stop those noobs from using them not now, not when the market goes on another bull run.

Where the decentralised options would most definitely be better is at the shithole end of the market. Noobs would save themselves a lot of pain rejecting the piece of crap centralised options.

I don't think that'll ever happen though as many of them seem to have a verrry powerful attraction to the worst and most obscure and abusive places they can possibly find. I find out about 95% of the places I've never previously heard of from their squealing about being ravaged by them.

[beerlover]

I do not think so. Places like binance offers a lot more than just freedom or centralization, they are providing you with a system that works so well and such a high volume that people would have hard time moving to another place until it has a huge volume as well but since they are not moving until they see it, others do the same and that causes the DEX to not have that much of a volume and that is why people keep not moving there.

Certainly DEX could be bigger than what they are right now, that is a total possibility because they are going to get better and better, however at the same time more money will go into crypto meaning there would be an increase in DEX but there will be an even bigger increase in the CEX as well. That is why I think CEX will always stay as the kings.

[ololajulo]

The multichain challenge with DEX still looks like a hard nut to crack. A lot of people still seek the anonymity DEX provides but they still are struggling smaller problem the exchanges cant help with. With data provided by the OP how much volume DEX will drive if it was multichain. Most of the top 100 coins on the marketcap are with divers blockchain, which I think traders will even prefer to trade with anonymity.

[kkofor]

DEX will not really dominate, there will still people not going to try it, after all, there is more benefit given by CEX.
The DEX though had established themselves especially the Uniswap which is heavily used these days.  Its easy to use and NO kyc too which one would prefer to use than DEX. Its best to just use DEX when you know that sooner the database of these CEX can be accessed by governments.

Personally, I prefer to trade at CEX because there are more benefits to me and there are ways to make money when you don't want to trade. I tried trading at DEX and got bored because it didn't leave any impression on me. However, there are still a lot of DEXs that are attracting a lot of investors like Uniswap and it is certain that this exchange will be a new force in the crypto market.

[boyptc]

Easier to use, these are the CEX.

And which is easy to use, people will be there. DEX is sort of complicated and not all traders are not willing to use it. But no offense for DEX users, both can co-exist at the same time.

[exstasie]

Nope. Never.

I hope they improve to the point where they're a viable choice for those who are inclined that way, but most people want their hand held and someone to moan to.

They are also just not time tested. There have been some horrible fuck-ups in the DeFi space, with huge sums of money compromised due to exploited bugs. I just don't trust most of the smart contracts underlying these protocols. Centralized exchanges are in a better position to prevent such exploitation, and roll back trades if necessary.

It could be decades or more before they are truly reliable enough, let alone truly decentralized.

[Emitdama]

You just can’t tell, anything can happen man. But the direction things are heading, I still think that CEX are going to continue to take the lead.

The other CEXs might be behind what Uniswap did, but Binance is very far ahead of them all, and for a DEX to get that high it might be difficult. Why I am saying that CEX might continue to be at the top is because a lot of people are concerned about safety when trading their coins these days and that will lead to them making use of centralized exchanges, especially those that are still newbie, since that’s what they get from making use of those. As for DEX, it will take time for them to get the hang of it.

[target]

You just can’t tell, anything can happen man. But the direction things are heading, I still think that CEX are going to continue to take the lead.

The other CEXs might be behind what Uniswap did, but Binance is very far ahead of them all, and for a DEX to get that high it might be difficult. Why I am saying that CEX might continue to be at the top is because a lot of people are concerned about safety when trading their coins these days and that will lead to them making use of centralized exchanges, especially those that are still newbie, since that’s what they get from making use of those. As for DEX, it will take time for them to get the hang of it.

I don't think its safety is the reason why we go to CEX, its about the list of tokens there and the volume where we can trade without having to pick an order. Theres definitely safer than CEX like the wallet projects that can connect to exchanges which is kind of a non custodial but its the liquidity that we aim to have.

The DEXs are gradually getting good liquidity actually. Over the past years since the time of bitshares and now the uniswap, its volume are growing and we can see it above.

[wxa7115]

I really hope this is the case but even if that doesn't happen we at least need several strong decentralized exchanges that offer you the ability to trade your coins without having to go through know your customer policies that are becoming so prevalent in centralized exchanges, otherwise this market is going to be dominated by those centralized exchanges and our ability to trade our bitcoins or any other coin for that matter is going to become very limited.

However I really think it is too soon for decentralized exchanges to dominate centralized exchanges so I really don't think this is going to happen until a few decades pass and that is a little bit depressing.