Decentralized exchanges (DEXs) are quickly gaining popularity among retail traders and quants, while institutions still prefer centralized platforms, according to Bitget Wallet’s CMO Jamie Elkaleh.
Elkaleh informed Cointelegraph that significant adoption of platforms like Hyperliquid is “coming from retail traders and semi-professional quants.” Retail users are attracted by airdrop cultures and points systems, while quants appreciate “low fees, fast fills, and programmable strategies,” he stated.
However, institutional trading desks continue to depend on centralized exchanges (CEXs) for their support of fiat rails, compliance services, and prime brokerage capabilities.
Elkaleh remarked that the gap in execution quality between DEXs and CEXs is diminishing rapidly. “Order-book-based DEXs such as Hyperliquid, dYdX v4, or GMX now deliver latency and depth that were once exclusive to CEXs,” he elaborated.
Related: Bitwise files for spot Hyperliquid ETF amid perp DEX wars
DEXs aim for CEX-speed trading with on-chain transparency
Hyperliquid, a leading perpetual DEX platform, operates on its own chain and provides an on-chain central limit order book. “Every order, cancellation, and fill is fully auditable,” said Elkaleh. “It offers performance without sacrificing decentralization.”
The platform achieves sub-second finality without imposing gas fees per trade, striving to merge CEX-like speed with self-custody. However, competition is intensifying. On BNB Chain, Aster has emerged as a significant competitor.
“Aster’s incentive campaigns recently elevated its daily perp volume to record highs, even surpassing Hyperliquid on certain days,” Elkaleh noted. In the past day, Aster recorded approximately $47 billion in perp volume, more than double Hyperliquid’s $17 billion volume, according to DefiLlama’s data.
The rise of BNB- and Solana-based DEXs is significant. BNB perp protocols recently achieved $60–70 billion in daily turnover, while Drift and Jupiter Perps have consistently gained traction. According to Elkaleh, these ecosystems are benefiting from rapid settlement, smooth onboarding, and various incentives.
Still, DEXs face well-known risks. Elkaleh highlighted issues related to validator or sequencer centralization, unreliable oracles, vulnerable upgrade keys, and bridge risks. He also emphasized the difficulties in maintaining reliable liquidation engines during volatile periods.
Recently, Aster compensated traders harmed by a glitch in its Plasma (XPL) perpetual market, which briefly inflated prices to nearly $4 due to a hard-coded index error. The price spike caused unexpected liquidations and fees.
Related: Aster can flip HYPE by market cap and rally another 480%: Analyst
DEXs and CEXs will coexist
Looking forward, Elkaleh expressed that he doesn’t envision a zero-sum outcome. “DEXs are undoubtedly the future for crypto-native trading rails,” he stated. “At the same time, CEXs remain crucial for fiat liquidity and onboarding.”
“Over the next decade, we could witness hybrid models that merge the strengths of both, fostering a balanced ecosystem where coexistence, not displacement, shapes the next phase of crypto markets,” he concluded.
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