Perpetual decentralized exchanges (perp DEXs) gained strong traction in 2025. Trading activity expanded, and new platforms entered the space seeking to capitalize on the momentum.
With perp DEXs continuing to capture a meaningful and growing share of derivatives activity, questions are emerging about how this evolution could reshape the broader trading landscape. BeInCrypto spoke with MEXC COO Vugar Usi Zade to examine whether Perp DEXs pose a meaningful challenge to centralized exchanges (CEXs) and what this shift may signal for their long-term role.
The Rise of Perp DEXs
Perpetual DEXs are decentralized, self-custodial platforms that operate 24/7 and allow traders to go long or short crypto assets using leverage with no expiry dates.
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The model’s popularity increased due to tighter regulation of centralized exchanges, major improvements in DEX execution and user experience that mimic their centralized counterparts, the rise of a hyper-financialized trading culture, and a revenue meta in which projects directly accrue value through fees and token buybacks.
A recent CoinGecko report highlighted the rapid rise of perpetual DEX activity relative to centralized platforms. According to the data, the DEX-to-CEX perps ratio rose from 2.1% in early 2023 to 11.7% by November 2025.
CoinGecko also revealed that November marked the 14th straight month of month-over-month growth in the DEX-to-CEX perps volume ratio.
This momentum is further reflected in trading volumes. Perpetual DEX activity reached a record $903.56 billion in October, more than ten times higher than the same period a year earlier.
“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.
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?
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.
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“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.
Usi Zade also emphasized that transparency is increasingly becoming non-negotiable for traders, particularly those who have witnessed or experienced exchange failures firsthand.
“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.
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.
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. Thus, this can impact funding rates, depth, and overall market endurance.
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He said that DEX’s risk management also presents a limitation due to its rigid liquidation system.
“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.
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.
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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.
“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.
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.
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.
“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.
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.