Bitget and Deribit CEOs discuss coexistence of DEXs and CEXs
Bitget and Deribit CEOs discuss coexistence of DEXs and CEXs
The lines between decentralized (DEX) and centralized exchanges (CEX) are increasingly blurring as the crypto industry matures and traditional finance (TradFi) dives deeper into the sector.
At The Block’s Emergence conference on Dec. 6, panelists explored how these platforms might coexist and evolve amid regulatory challenges and market shifts.
Decentralized exchanges reached $300 billion in trading volumes in November, surpassing the $260 billion high from May 2021. While still capturing a smaller market share than CEXs, the DEX-to-CEX ratio has risen to 11%, reflecting steady growth.
Panelists agreed that DEXs and CEXs target different demographics, creating potential for coexistence. Gracy Chen, CEO of Bitget, noted that centralized exchanges attract retail and institutional clients due to superior liquidity and user experience, while DEXs appeal to professional DeFi enthusiasts seeking unique tokens.
Chen highlighted regulatory dynamics as a key factor shaping market consolidation. “The bigger players will become even bigger, while smaller ones may gradually disappear,” she said. Bitget is exploring strategic partnerships to enter new markets, including the U.S., by acquiring licenses and possibly integrating with smaller banking institutions.
Industry consolidation and regulatory challenges
Deribit CEO Luuk Strijers shared a more cautionary outlook, citing regulatory pressures as a threat to many platforms’ viability. Strijers predicted a dramatic industry consolidation, with only a handful of platforms surviving heightened operational costs and stricter compliance requirements.
Strijers emphasized that sustaining global operations demands significant resources, leaving little room for smaller competitors. “There will be a massive shift,” he said, with a focus on leading platforms capable of navigating regulatory complexities.
Alain Kunz, Head of European Business Development at GSR, addressed the liquidity dynamics influencing both centralized and decentralized platforms. While DeFi could offer optimal liquidity through smart contracts, scaling for institutional adoption remains a challenge, particularly in Europe.
As the regulatory environment intensifies and TradFi integration advances, the coexistence of DEXs and CEXs will hinge on innovation, adaptability, and strategic partnerships. The evolution of these platforms may set the stage for a more integrated and sustainable crypto ecosystem.
Earlier, El Salvador grants Bitget license for Bitcoin services
