Perp DEXs Are Growing Fast, but Do They Really Threaten CEXs? MEXC COO Explains
Perpetual decentralized exchanges (perp DEXs) gained sturdy traction in 2025. Trading exercise expanded, and new platforms entered the house searching for to capitalize on the momentum.
With perp DEXs persevering with to seize a significant and rising share of derivatives exercise, questions are rising about how this evolution might reshape the broader buying and selling panorama. BeInCrypto spoke with MEXC COO Vugar Usi Zade to look at whether or not Perp DEXs pose a significant problem to centralized exchanges (CEXs) and what this shift might sign for his or her long-term position.
The Rise of Perp DEXs
Perpetual DEXs are decentralized, self-custodial platforms that function 24/7 and permit merchants to go lengthy or quick crypto belongings utilizing leverage with no expiry dates.
The mannequin’s popularity increased due to tighter regulation of centralized exchanges, main enhancements in DEX execution and person expertise that mimic their centralized counterparts, the rise of a hyper-financialized buying and selling tradition, and a income meta wherein initiatives instantly accrue worth by way of charges and token buybacks.
A current CoinGecko report highlighted the speedy rise of perpetual DEX exercise relative to centralized platforms. According to the information, the DEX-to-CEX perps ratio rose from 2.1% in early 2023 to 11.7% by November 2025.
CoinGecko additionally revealed that November marked the 14th straight month of month-over-month development within the DEX-to-CEX perps quantity ratio.
This momentum is additional mirrored in buying and selling volumes. Perpetual DEX exercise reached a record $903.56 billion in October, greater than ten occasions increased than the identical interval a yr earlier.
“This has largely been led by the emergence of recent perps DEX gamers – notably Hyperliquid, Lighter, and edgeX – which have surpassed the early incumbents. For instance, Hyperliquid alone has recorded $2.74 trillion in perps quantity to this point this yr, which places it on par with Coinbase and is greater than the opposite prime perp DEXs mixed,” CoinGecko’s analysis analyst, Yuqian Lim, wrote in November.
According to the most recent data from DefiLama, Hyperliquid, Aster, and Lighter keep the lead as the highest three perpetual DEXs by buying and selling quantity.
Perp DEXs vs. CEXs: Which Model Is Really Winning?
The speedy growth of on-chain options raises an essential query: Does this development sign an enduring structural shift or merely a brief response to market circumstances?
According to Usi Zade, the expansion displays an evolution in dealer habits relatively than a full paradigm shift. He added that present knowledge nonetheless reveals centralized exchanges firmly dominating derivatives flows. Their core strengths in deep liquidity and institutional belief stay intact.
“For it to be a structural evolution, perp DEXs want each sustained liquidity and participation from market-making professionals. If DEXs even have capital effectivity, it narrows the hole with CEX execution,” he acknowledged.
When requested whether or not perpetual DEXs provide benefits over centralized exchanges, Usi Zade highlighted transparency as a key differentiator. He defined that these platforms permit customers to confirm positions, collateral, and liquidation mechanisms in real time.
Usi Zade additionally emphasised that transparency is more and more turning into non-negotiable for merchants, significantly those that have witnessed or skilled trade failures firsthand.
“Centralized trade fashions have a tough time catching as much as such an accountability degree. There will likely be no DEXs’ replication with out altering how CEX’s custody and threat administration work,” the chief commented.
Beyond transparency, Usi Zade additionally pointed to permissionless entry as an space the place DEXs maintain an edge. However, he emphasised that centralized exchanges function inside strict regulatory frameworks that prioritize compliance and person safety.
Furthermore, he famous that on-chain entry is one more reason merchants are drawn to perp DEXs, as they’ll go identification checks with no regional restrictions or account limitations. These capabilities develop into essential when there’s a regulatory tightening interval.
While the benefits are notable, there are nonetheless areas the place decentralized exchanges lag behind. Usi Zade identified that liquidity focus and execution high quality stay essentially the most important challenges for DEXs.
Although decentralized platforms have seen sturdy development, they nonetheless function with smaller capital bases. Thus, this may influence funding charges, depth, and general market endurance.
He mentioned that DEX’s threat administration additionally presents a limitation resulting from its inflexible liquidation system.
“Centralized exchanges, then again, have the capability to intervene, polish, or pause liquidations as a part of a broader safety coverage,” the chief informed BeInCrypto.
Lastly, Usi Zade famous that on-chain derivatives buying and selling typically requires extra capital and carries increased implicit prices in comparison with centralized platforms. According to him,
“This is just not supreme if we’re a fast-running strategist.”
Perp DEXs Attract Traders, but Institutions Are Not Moving Yet
Meanwhile, the MEXC COO mentioned that the trade has but to see a broad migration from institutional purchasers to decentralized platforms. Instead, DEXs are more and more positioning themselves as options.
More refined merchants, he elaborated, keep on-chain publicity as a hedge towards regulatory or counterparty threat. Despite this, centralized exchanges remain the traders’ go-to place for core liquidity, leverage, and execution.
In addition, Usi Zade urged that almost all on-chain derivatives merchants fall right into a semi-professional class resulting from their grasp of technical phrases. For mid-sized accounts, self-custody gives an added layer of consolation.
However, these merchants are typically not deploying institutional-grade methods, making them a pure match for decentralized platforms.
Beyond this semi-professional section, merchants have a tendency to make use of perp DEXs selectively, concentrating on particular devices for diversification or arbitrage. However, these platforms are not often handled as major execution venues, reinforcing the continued central position of centralized exchanges.
“Right now, decentralized derivatives want to make sure predictability with deep liquidity and operations help. Until then, migration will likely be extra incremental relatively than transformational,” he remarked.
The Outlook for Perp DEXs and CEXs in 2026
Finally, in 2026, the chief expects that decentralized and centralized derivatives platforms will proceed to coexist. Yet, every will serve distinct dealer wants.
“If platforms perceive and strike a steadiness between the 2, that’s a win,” he mentioned.
Usi Zade shared that by the top of the yr, this equilibrium is anticipated to achieve the 15–20% vary. He believes that this vary indicators sustainable development for on-chain platforms with out undermining the position of centralized exchanges as the first venue for derivatives buying and selling.
He additionally forecasted that the market is prone to transfer towards larger hybridization, the place there’s a greater connection between transparency with improved person expertise and the deep liquidity historically supplied by centralized platforms.
“The threat that we must always pay attention to is fragmentation, the place liquidity is scattered throughout a number of venues and chains, making it inefficient,” Usi Zade acknowledged.
Overall, perpetual DEXs are gaining relevance, but they don’t seem to be changing centralized exchanges. Instead, each fashions are evolving in parallel, with on-chain platforms increasing their roles alongside CEXs, suggesting a extra hybrid derivatives house.
The publish Perp DEXs Are Growing Fast, but Do They Really Threaten CEXs? MEXC COO Explains appeared first on BeInCrypto.
