Perp DEXs: Can They Topple CEXs?

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In the year 2025, the realm of perpetual decentralized exchanges (perp DEXs) experienced an insatiable surge, their tendrils of influence stretching ever further, as traders, ever eager for the next novelty, flocked to these digital arenas, their activities swelling like a tide, while new platforms, like vultures circling a carcass, descended upon the scene, each vying to siphon the very lifeblood of this burgeoning frenzy. Soaring trading activity and a deluge of new platforms, each whispering promises of untold riches, sought to capitalize on the momentum, their ambitions as boundless as the blockchain itself.

With perp DEXs continuing to siphon a growing share of derivatives activity, the question looms: will this evolution reshape the trading landscape, or is it merely a fleeting tempest? BeInCrypto, that paragon of journalistic rigor, engaged in a discourse with the esteemed Vugar Usi Zade, COO of MEXC, to probe the question: do these perp DEXs, with their tantalizing allure, present a genuine threat to the venerable citadels of centralized exchanges, and what does this evolution portend for their enduring supremacy?

The Rise of Perp DEXs

Perpetual DEXs, those enigmatic beasts of the decentralized realm, are self-custodial platforms that operate ceaselessly, allowing traders to bet on crypto assets with leverage, their positions unburdened by the tyranny of expiry dates. Their model’s popularity, a curious alchemy of regulatory constraints, improved execution, and the intoxicating allure of hyper-financialization, has seen them accrue value through fees and token buybacks, a dance of digital alchemy.

A recent CoinGecko report, that arbiter of market truth, highlighted the meteoric rise of perpetual DEX activity relative to their centralized counterparts. According to the data, the DEX-to-CEX perps ratio soared from 2.1% in early 2023 to 11.7% by November 2025-a testament to the relentless march of decentralization, though one might wonder if this is a fleeting fad or the dawn of a new era.

CoinGecko also revealed that November marked the 14th consecutive month of month-over-month growth in the DEX-to-CEX perps volume ratio. This momentum, a veritable tidal wave, is further evidenced by trading volumes that reached a record $903.56 billion in October, a figure tenfold higher than the same period a year earlier, as if the very blockchain itself were exhaling in relief.

“This has largely been led by the emergence of new perps DEX players – notably Hyperliquid, Lighter, and edgeX – which have surpassed the early incumbents. For example, Hyperliquid alone has recorded $2.74 trillion in perps volume so far this year, which puts it on par with Coinbase and is more than the other top perp DEXs combined,” CoinGecko’s research analyst, Yuqian Lim, wrote in November.

According to the latest data from DefiLama, Hyperliquid, Aster, and Lighter maintain the lead as the top three perpetual DEXs by trading volume, their names etched into the annals of crypto history, though their dominance is as tenuous as a house of cards in a hurricane.

Perp DEXs vs. CEXs: Which Model Is Really Winning?

The rapid expansion of on-chain alternatives raises an important question: Does this trend signal a lasting structural shift or merely a temporary response to market conditions? A question as elusive as the ghost of a forgotten algorithm.

All perp DEXs aren’t really competing with each other – we’re competing with CeFi.

Here’s today’s picture:
– Top 10 DEX 24h perp volume: $56B
– Top 10 CEX 24h perp volume: $525B

CeFi still does ~9× more volume.

But:
– 2 years ago: CeFi perps were ~40× bigger
– 1 year ago: ~20×…

– Extended (@extendedapp) November 21, 2025

According to Usi Zade, the growth reflects an evolution in trader behavior rather than a full paradigm shift. He added that current data still shows centralized exchanges firmly dominating derivatives flows. Their core strengths in deep liquidity and institutional trust remain intact, like a fortress of stone in a world of sand.

“For it to be a structural evolution, perp DEXs need both sustained liquidity and participation from market-making professionals. If DEXs also have capital efficiency, it narrows the gap with CEX execution,” he stated.

When asked whether perpetual DEXs offer advantages over centralized exchanges, Usi Zade highlighted transparency as a key differentiator. He explained that these platforms allow users to verify positions, collateral, and liquidation mechanisms in real time, a feature as liberating as a key to a locked room.

Usi Zade also emphasized that transparency is increasingly becoming non-negotiable for traders, particularly those who have witnessed or experienced exchange failures firsthand. A sentiment as bitter as a cup of burnt coffee.

“Centralized exchange models have a hard time catching up to such an accountability level. There will be no DEXs’ replication without changing how CEX’s custody and risk management work,” the executive commented.

Beyond transparency, Usi Zade also pointed to permissionless access as an area where DEXs hold an edge. However, he emphasized that centralized exchanges operate within strict regulatory frameworks that prioritize compliance and user protection, a double-edged sword for the uninitiated.

Furthermore, he noted that on-chain access is another reason traders are drawn to perp DEXs, as they can pass identity checks with no regional restrictions or account limitations. These capabilities become necessary when there’s a regulatory tightening period, a scenario as inevitable as the rising sun.

While the advantages are notable, there are still areas where decentralized exchanges lag behind. Usi Zade pointed out that liquidity concentration and execution quality remain the most significant challenges for DEXs. Although decentralized platforms have seen strong growth, they still operate with smaller capital bases, their potential as constrained as a bird with clipped wings.

He said that DEX’s risk management also presents a limitation due to its rigid liquidation system. A system as inflexible as a medieval chainmail, leaving little room for mercy.

“Centralized exchanges, on the other hand, have the capacity to intervene, polish, or pause liquidations as part of a broader security policy,” the executive told BeInCrypto.

Lastly, Usi Zade noted that on-chain derivatives trading often requires more capital and carries higher implicit costs compared to centralized platforms. According to him,

“This is not ideal if we are a fast-running strategist.”

Perp DEXs Attract Traders, but Institutions Are Not Moving Yet

Meanwhile, the MEXC COO mentioned that the industry has yet to see a broad migration from institutional clients to decentralized platforms. Instead, DEXs are increasingly positioning themselves as alternatives. More sophisticated traders, he elaborated, maintain on-chain exposure as a hedge against regulatory or counterparty risk. Despite this, centralized exchanges remain the traders’ go-to place for core liquidity, leverage, and execution, a relationship as enduring as the stars above.

In addition, Usi Zade suggested that most on-chain derivatives traders fall into a semi-professional category due to their grasp of technical terms. For mid-sized accounts, self-custody offers an added layer of comfort. However, these traders are generally not deploying institutional-grade strategies, making them a natural fit for decentralized platforms, a symbiosis as fragile as a spider’s web.

However, these traders are generally not deploying institutional-grade strategies, making them a natural fit for decentralized platforms. Beyond this semi-professional segment, traders tend to use perp DEXs selectively, targeting specific instruments for diversification or arbitrage. However, these platforms are rarely treated as primary execution venues, reinforcing the continued central role of centralized exchanges, a status quo as immutable as gravity.

“Right now, decentralized derivatives need to ensure predictability with deep liquidity and operations support. Until then, migration will be more incremental rather than transformational,” he remarked.

The Outlook for Perp DEXs and CEXs in 2026

Finally, in 2026, the executive expects that decentralized and centralized derivatives platforms will continue to coexist. Yet, each will serve distinct trader needs. “If platforms understand and strike a balance between the two, that’s a win,” he said, a sentiment as hopeful as a child’s wish for a rainbow.

“If platforms understand and strike a balance between the two, that’s a win,” he said.

Usi Zade shared that by the end of the year, this equilibrium is expected to reach the 15-20% range. He believes that this range signals sustainable growth for on-chain platforms without undermining the role of centralized exchanges as the primary venue for derivatives trading. A delicate dance of coexistence, as intricate as a sonnet.

He also forecasted that the market is likely to move toward greater hybridization, where there’s a better connection between transparency with improved user experience and the deep liquidity traditionally offered by centralized platforms. A future as bright as a newly minted coin.

“The risk that we should be aware of is fragmentation, where liquidity is scattered across multiple venues and chains, making it inefficient,” Usi Zade acknowledged, a warning as sharp as a blade.

Overall, perpetual DEXs are gaining relevance, but they are not replacing centralized exchanges. Instead, both models are evolving in parallel, with on-chain platforms expanding their roles alongside CEXs, suggesting a more hybrid derivatives space, a future as uncertain as a roulette spin.

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2026-01-22 16:56