In order to seize the on-chain market opportunity, CEX has to accelerate its layout to avoid continuous erosion of market share by DEX.
Written by: ChandlerZ, Foresight News
Recently, Bybit CEO Ben Zhou posted on platform X, stating, "The first on-chain DEX incubated by Bybit, Byreal, will launch at the end of this month. Born from scratch in the Solana ecosystem."
It is pointed out that the uniqueness of Byreal lies in: 1/ The collaboration between CEX and DEX. Byreal is not just "another DEX". It combines CEX-level liquidity with DeFi's native transparency. This is true hybrid finance. More CEX + DEX projects will be launched in the future. 2/ Unified liquidity and speed using RFQ + CLMM routing design. Byreal will provide users with low slippage and MEV protection for Swap exchange transactions at an extraordinary speed.
According to official information, the Byreal testnet will be launched on June 30, and the mainnet is expected to be released in the third quarter.
Bybit is not the first centralized exchange to venture into the DEX space. With the continued growth of decentralized trading platforms, the improvement of DEX in terms of liquidity and user activity is gradually narrowing the gap with CEX.
DEX market share rises, Solana becomes one of the main choices
According to DeFiLlama data, the trading volume of DEX has shown a steady growth trend. In May 2024, the monthly trading volume of DEX reached $405.3 billion, accounting for about 25% of the global spot trading total, setting a new historical high. At the same time, the total locked value of DEX surpassed $20 billion.
From the perspective of blockchain distribution, Ethereum remains the dominant chain, Solana ranks second, with a TVL of about 3.3 billion USD, of which more than half is occupied by Raydium.
Bybit chose Solana as the underlying infrastructure for Byreal, primarily based on its significant growth performance. In 2024, the activity of Meme token trading and on-chain token issuance platforms (such as Pump.fun) on Solana saw a substantial increase, propelling DEX to become the main channel for token launches. Mainstream Meme assets including WIF, BOME, and BONK have all formed initial liquidity on Solana DEXs such as Raydium and Jupiter, and were subsequently listed on centralized exchanges.
Solana has maintained a high level of activity and developer growth over the past year, becoming one of the fastest-growing blockchains in the DEX ecosystem. Solana's average daily transaction volume remains stable at around 80 million, with a cumulative total of over 30 billion transactions, ranking among the top public chains. In contrast, Base and Sui have average daily transaction volumes of around 7 million and 6 million respectively. Although their scales are relatively smaller, they exhibit faster growth and higher activity.
In terms of daily active address data, Solana's average daily active addresses exceed 4 million, peaking at over 9.4 million. For centralized exchanges (CEX) seeking to expand on-chain, Solana provides a relatively mature high-performance execution environment and liquidity foundation.
The Decentralized Battle of CEX
When users choose on-chain trading products, they usually prioritize familiar platforms and a good user experience. This trend has driven leading centralized exchanges to actively layout decentralized exchange products. There are several precedents for CEX entering the decentralized trading field. Binance's PancakeSwap based on BSC has maintained a leading position in the DEX market for a long time, OKX has launched OKX DEX, and Coinbase supports DEX Aerodrome based on the Base chain, with trading volume growing rapidly and market share ranking among the top.
These CEXs gradually gather market liquidity through self-built on-chain platforms or strategic partnerships, covering on-chain and off-chain user groups. At the product level, they are also actively exploring innovative functions such as dark pool trading, cross-chain aggregation, and mixed liquidity pools to enhance trading depth and execution efficiency, meeting the increasingly diverse market demands.
From a competitive landscape perspective, CEX still maintains an advantage in overall trading volume and user scale. However, past CEX liquidity crises and risk events have increased user attention towards DEX, which offers a decentralized, on-chain transparent environment with relatively low compliance barriers, leading to intensifying competition between the two.
From the above data, it can be seen that emerging gameplay tends to prefer DEX with lower compliance requirements and convenience, and traffic has also shifted towards on-chain products earlier, leading to an awkward situation for some CEX where they "can’t get the meat but can have a sip of the soup." To seize the first-mover advantage in the on-chain market, CEX have to accelerate their layout to avoid continuous erosion of market share by DEX, which in turn causes pressure on profit shrinkage.
Summary
Simon Kim, CEO of the crypto venture capital firm Hashed, predicts that DEX trading volume may surpass CEX by 2028. With CEX increasing its investment in DEX and the current development trajectory of the DEX ecosystem, the likelihood of this prediction coming true is rising.
From the perspective of industry development trends, the future form of exchanges may no longer strictly distinguish between centralized and decentralized, and hybrid trading platforms may become a new direction for development. Ultimately, the demands of trading users remain a key factor in the success or failure of a platform. Platforms that can provide stable, secure, and user-demand-compliant products will have a greater chance of gaining a competitive advantage in the market.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Bybit incubates DEX Byreal, intensifying the decentralization competition of CEX.
Written by: ChandlerZ, Foresight News
Recently, Bybit CEO Ben Zhou posted on platform X, stating, "The first on-chain DEX incubated by Bybit, Byreal, will launch at the end of this month. Born from scratch in the Solana ecosystem."
It is pointed out that the uniqueness of Byreal lies in: 1/ The collaboration between CEX and DEX. Byreal is not just "another DEX". It combines CEX-level liquidity with DeFi's native transparency. This is true hybrid finance. More CEX + DEX projects will be launched in the future. 2/ Unified liquidity and speed using RFQ + CLMM routing design. Byreal will provide users with low slippage and MEV protection for Swap exchange transactions at an extraordinary speed.
According to official information, the Byreal testnet will be launched on June 30, and the mainnet is expected to be released in the third quarter.
Bybit is not the first centralized exchange to venture into the DEX space. With the continued growth of decentralized trading platforms, the improvement of DEX in terms of liquidity and user activity is gradually narrowing the gap with CEX.
DEX market share rises, Solana becomes one of the main choices
According to DeFiLlama data, the trading volume of DEX has shown a steady growth trend. In May 2024, the monthly trading volume of DEX reached $405.3 billion, accounting for about 25% of the global spot trading total, setting a new historical high. At the same time, the total locked value of DEX surpassed $20 billion.
From the perspective of blockchain distribution, Ethereum remains the dominant chain, Solana ranks second, with a TVL of about 3.3 billion USD, of which more than half is occupied by Raydium.
Bybit chose Solana as the underlying infrastructure for Byreal, primarily based on its significant growth performance. In 2024, the activity of Meme token trading and on-chain token issuance platforms (such as Pump.fun) on Solana saw a substantial increase, propelling DEX to become the main channel for token launches. Mainstream Meme assets including WIF, BOME, and BONK have all formed initial liquidity on Solana DEXs such as Raydium and Jupiter, and were subsequently listed on centralized exchanges.
Solana has maintained a high level of activity and developer growth over the past year, becoming one of the fastest-growing blockchains in the DEX ecosystem. Solana's average daily transaction volume remains stable at around 80 million, with a cumulative total of over 30 billion transactions, ranking among the top public chains. In contrast, Base and Sui have average daily transaction volumes of around 7 million and 6 million respectively. Although their scales are relatively smaller, they exhibit faster growth and higher activity.
In terms of daily active address data, Solana's average daily active addresses exceed 4 million, peaking at over 9.4 million. For centralized exchanges (CEX) seeking to expand on-chain, Solana provides a relatively mature high-performance execution environment and liquidity foundation.
The Decentralized Battle of CEX
When users choose on-chain trading products, they usually prioritize familiar platforms and a good user experience. This trend has driven leading centralized exchanges to actively layout decentralized exchange products. There are several precedents for CEX entering the decentralized trading field. Binance's PancakeSwap based on BSC has maintained a leading position in the DEX market for a long time, OKX has launched OKX DEX, and Coinbase supports DEX Aerodrome based on the Base chain, with trading volume growing rapidly and market share ranking among the top.
These CEXs gradually gather market liquidity through self-built on-chain platforms or strategic partnerships, covering on-chain and off-chain user groups. At the product level, they are also actively exploring innovative functions such as dark pool trading, cross-chain aggregation, and mixed liquidity pools to enhance trading depth and execution efficiency, meeting the increasingly diverse market demands.
From a competitive landscape perspective, CEX still maintains an advantage in overall trading volume and user scale. However, past CEX liquidity crises and risk events have increased user attention towards DEX, which offers a decentralized, on-chain transparent environment with relatively low compliance barriers, leading to intensifying competition between the two.
From the above data, it can be seen that emerging gameplay tends to prefer DEX with lower compliance requirements and convenience, and traffic has also shifted towards on-chain products earlier, leading to an awkward situation for some CEX where they "can’t get the meat but can have a sip of the soup." To seize the first-mover advantage in the on-chain market, CEX have to accelerate their layout to avoid continuous erosion of market share by DEX, which in turn causes pressure on profit shrinkage.
Summary
Simon Kim, CEO of the crypto venture capital firm Hashed, predicts that DEX trading volume may surpass CEX by 2028. With CEX increasing its investment in DEX and the current development trajectory of the DEX ecosystem, the likelihood of this prediction coming true is rising.
From the perspective of industry development trends, the future form of exchanges may no longer strictly distinguish between centralized and decentralized, and hybrid trading platforms may become a new direction for development. Ultimately, the demands of trading users remain a key factor in the success or failure of a platform. Platforms that can provide stable, secure, and user-demand-compliant products will have a greater chance of gaining a competitive advantage in the market.