Share this article
DEXs Have Grown the Most as Competition Among Crypto Exchanges Intensifies: Chainalysis
The majority of DEX users are professional crypto traders looking for “new sources of alpha,” said one analyst.
By Muyao Shen
Updated May 11, 2023, 5:04 p.m. Published Nov 9, 2021, 10:51 p.m.
Make us preferred on Google
Decentralized exchanges (DEX) have grown massively since 2019, while the number of active exchanges – whether centralized or decentralized – has dropped in the same time period, according to Chainalysis’ latest report.
This finding, which the blockchain data firm published Tuesday, showed that as cryptocurrency exchange competition has intensified, the crypto market – especially large, sophisticated crypto traders – has favored exchanges with high innovation and scalability.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
“DEXs have become extremely popular, which coincides with the explosive growth of the DeFi (decentralized finance) category in general,” the report concluded.
The number of active DEXs has climbed significantly since 2019, according to Chainalysis, but the monthly number of active cryptocurrency exchanges dropped to 672 in August 2021 from a peak of 845 in August 2020.
The Chainalysis report separated exchanges into six categories: centralized exchanges, DEXs, high-risk exchanges with few know-your-customer (KYC) requirements, over-the-counter (OTC) brokers and derivatives exchanges – based on their business models and technical infrastructure.
As a result, the blockchain data firm also reported that the number of large DEXs and the total value they have received have grown the most by far since August 2020.
“We see that DEX users carry out much larger transactions than centralized exchange users,” the report said. “This is likely because DeFi is also more popular in countries with bigger, more established cryptocurrency markets, which also tend to be wealthier countries.”
David Gogel, growth lead at popular DEX dYdX, told Chainalysis in the report that the majority of DeFi users are “established cryptocurrency investors or traders” seeking “new sources of alpha.”
Centralized exchanges: Still important
The report also noted that despite the DEXs’ growth, large-sized centralized exchanges remain an important market player.
Large centralized exchanges, including derivatives, spot, fiat-to-crypto and crypto-to-crypto, grew significantly in value received between August 2020 and August 2021.
“As cryptocurrency adoption grows, most new users will acquire their first cryptocurrency through centralized exchanges, as these are typically the easiest services to exchange fiat currency for different types of cryptocurrency,” the report said.
Another interesting trend is that a larger number of unique crypto assets available on a platform correlate with higher transaction volume. But bitcoin and ether remain the most traded tokens on exchanges overall.
“The centralized exchanges that continue to grow appear to be those offering the widest variety of assets, which keeps them attractive to the most active traders,” the report added.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Key bitcoin price levels to watch as downward pressure builds
As bitcoin remains in a downtrend, several technical and onchain levels stand out as critical areas of support.
What to know:
- The 100-week moving average at $87,145 remains the main line of defense.
- Below this, the cost basis of U.S. spot bitcoin ETF buyers at $84,099 has provided support during recent consolidation.
- A sustained break below $80,000 would likely open the door to a revisit of the April 2025 low near $76,000.
Top Stories
