At the recent BNBDay event in Tokyo, Binance founder Changpeng “CZ” Zhao made a bold prediction: decentralized exchanges (DEXs) will eventually surpass centralized exchanges (CEXs) in trading volume.
CZ’s Vision: DEXs to Surpass CEXs
At the BNBDay event in Tokyo, Binance founder Changpeng “CZ” Zhao predicted that decentralized exchanges (DEXs) will ultimately overtake centralized exchanges (CEXs) in trading volume. While CEXs currently dominate due to superior liquidity and user experience, CZ believes momentum is shifting toward DeFi. He asserted that a truly private and efficient DEX could redefine the industry.
Recent Market Trends Support Growth in DEXs
Recent data reinforces CZ’s prediction. In Q2 2025, DEXs reached record market share in spot trading volumes. CEXs, led by Binance, are seeing slower growth and even declining volumes. Binance’s quarterly spot trading fell drastically to $1.47 trillion from over $2 trillion. Other leading CEXs like Crypto.com and Coinbase reported even larger declines. Meanwhile, traders are increasingly migrating to decentralized exchanges.
PancakeSwap and DEX Innovation
PancakeSwap led the DEX surge, with trading volumes jumping over five times compared to the previous quarter. Its rapid growth underscores traders’ preference for non-custodial, privacy-centric platforms over CEXs.
Rise of CeDeFi and DeFi’s Advantages
The popularity of hybrid CeDeFi platforms, combining CEX and DEX benefits, is also fueling DEX growth. These platforms provide low-slippage trades, MEV protection, and fast execution while maintaining transparency through on-chain settlement. CeDeFi innovations are closing the gap between DEXs and CEXs. Additionally, DeFi’s less-restrictive regulation allows for rapid experimentation and feature launches, boosting on-chain activity.
Future Outlook: Assets, Stablecoins, and DeFi
CZ highlighted the potential of tokenized real-world assets (RWAs) and stablecoins, though they face regulation and liquidity challenges. He emphasized that DeFi and DEXs are the future, set to become central to global finance.
Bottom Line
The crypto landscape is shifting toward decentralization, privacy, and user empowerment. As DEXs continue to innovate and resolve existing challenges, they are positioned to capture greater market share and may soon surpass CEXs in trading volume, signaling a fundamental industry transformation.
