Decentralized Exchange Volumes Surge Amid Memecoin Trading Boom

Decentralized exchange (DEX) trading volumes have surged in 2025, outpacing centralized exchanges in key metrics as memecoin speculation drives activity. Spot trading on DEXs has climbed sharply over the past five years, with the DEX-to-CEX spot ratio peaking at 37.4% in June. This surge was largely fueled by heightened trading on PancakeSwap and orders routed from new platforms launched earlier in the year.

Centralized exchanges, traditionally dominating the market, have faced growing competition as DEXs enhance their offerings to attract traders seeking on-chain solutions. Despite a decline from June highs, the DEX-to-CEX spot ratio has remained near 21% through November, indicating persistent market share gains for decentralized platforms. Spot volumes from May to October reached all-time highs, including $419 billion in October, demonstrating resilience even during broader market corrections.

Futures trading on DEXs has also gained traction, with the DEX-to-CEX perpetuals ratio reaching 11.7% in November. Perpetual trading on decentralized platforms recorded an all-time high of $903 billion in October, marking a tenfold increase year-on-year. The rise has been supported by emerging DEX platforms offering incentives to attract traders, including Hyperliquid, Lighter, and edgeX.

Hyperliquid has reported $2.74 trillion in perpetual trading volumes for 2025, rivaling some of the largest centralized exchanges and surpassing other DEX competitors combined. While this growth reflects a shift toward decentralized trading, sustainability remains uncertain once incentive programs conclude.

Overall, both spot and perpetual DEX volumes show a growing preference for on-chain trading, highlighting a gradual but steady market transition away from centralized platforms.