Retail Traders and Quants Push DEX Growth as Institutions Stay Loyal to CEXs

Retail Traders and Quants Push DEX Growth as Institutions Stay Loyal to CEXs

Retail and Quants Fuel the Rise of DEXs

Decentralized exchanges (DEXs) are gaining ground fast, with retail traders and quantitative funds (quants) driving adoption, according to Jamie Elkaleh, CMO of Bitget Wallet.

Platforms like Hyperliquid are proving particularly popular. Elkaleh explained that retail users are attracted by airdrops and points systems, while quants favor low fees, fast order execution, and programmable strategies.

Institutions Still Rely on Centralized Exchanges

Despite DEX momentum, institutions remain tied to centralized exchanges (CEXs). These platforms provide fiat rails, compliance services, and prime brokerage offerings — critical features for larger desks.

Elkaleh noted that the gap in execution quality between CEXs and DEXs is narrowing:
“Order-book based DEXs such as Hyperliquid, dYdX v4, or GMX now deliver latency and depth that used to be exclusive to CEXs.”

DEXs Aim for CEX Speed with Onchain Transparency

Hyperliquid operates with an onchain central limit order book where every order, cancellation, and fill is fully auditable. The platform achieves sub-second finality without gas fees, offering CEX-like speed while maintaining decentralization.

But competition is heating up. On BNB Chain, Aster has surged as a challenger.

Aster Overtakes Hyperliquid on Volume

Aster’s incentive campaigns pushed daily perpetual trading volumes to record highs, at times surpassing Hyperliquid.

• Aster: $47 billion daily perp volume

• Hyperliquid: $17 billion daily perp volume

BNB perp protocols have recently hit $60–70 billion in daily turnover, while Solana-based Drift and Jupiter Perps also show steady growth.

Risks That Still Shadow DEXs

Despite growth, Elkaleh acknowledged persistent risks:

• Centralization of validators and sequencers

• Oracle vulnerabilities

• Exploitable upgrade keys

• Bridge security flaws

• Liquidation challenges during volatility

Recently, Aster reimbursed traders after a glitch in its Plasma (XPL) perpetual market briefly pushed prices near $4, triggering liquidations and fees.

A Future of Coexistence

Elkaleh doesn’t see a zero-sum game between DEXs and CEXs:
“DEXs are undoubtedly the future of crypto-native trading rails. At the same time, CEXs remain essential for fiat liquidity and onboarding.”

He added that the next decade may bring hybrid models, combining the strengths of both systems into a balanced ecosystem.