Decentralized exchanges have entered a new era. In the third quarter of 2025, DEXs processed $1.43 trillion in spot trading volume, the highest ever recorded, marking a decisive step in crypto’s migration away from centralized exchanges.
According to data from The Block, DEX activity grew 43.6% from the previous quarter’s $1 trillion, overtaking the earlier record of $1.2 trillion set at the start of the year. August and September ranked among the most active months on record, with more than $500 billion traded each. DEXs also captured 17.7% of total spot volume, showing they’re not just keeping pace with centralized exchanges but steadily gaining market share.
Price Discovery Turns On-Chain
Analysts say the surge reflects a deeper transformation. Researcher Ignas observed that newly listed tokens on centralized exchanges often lose significant value after launch, suggesting that pricing power now originates on DEXs. Assets like Simon’s Cat (CAT), Magic Eden’s ME, and Velodrome (VELO) all plunged roughly 70% following their Binance listings, reinforcing the idea that centralized venues now serve mainly as exit ramps.
As Ignas summarized, “Price discovery has moved on-chain – DEXs set the price, CEXs provide the exit.”
Market Infrastructure Evolves
Platforms like Uniswap, Curve, and Aerodrome are now handling hundreds of billions in monthly trades, rivaling traditional exchanges in liquidity and efficiency. With that, market indices, oracles, and trading models increasingly rely on DEX data, signaling a new foundation for how digital assets are valued.
The shift also means risk management and liquidity provision are now largely governed by smart contracts rather than intermediaries. Centralized exchanges remain vital for large-scale capital exits, but decentralized systems are where price formation, custody, and execution converge.
The New Normal
With trading volumes climbing to unprecedented levels, decentralized markets are reshaping crypto’s core structure. DEXs have evolved from experimental tools into primary venues of price discovery, while CEXs play a supporting role.
As on-chain liquidity deepens and transparency grows, the line between trading, custody, and settlement continues to blur – signaling that the center of crypto price discovery has firmly moved on-chain.
