Perp DEX is growing rapidly, but is it really threatening CEX? MEXC COO explains

Perpetual decentralized exchanges (PERP DEX) will gain significant momentum in 2025. Trading activity has expanded and new platforms have entered the space in an attempt to capitalize on the momentum.

As Perp DEX continues to capture a significant share of derivatives trading, questions are arising about how this evolution could reshape the broader trading environment. BeInCrypto spoke with MEXC COO Vugar Usi Zade to explore whether Perp DEXs pose a meaningful challenge to centralized exchanges (CEXs) and what this change might mean for their long-term role.

Rise of Perp DEX

Perpetual DEX is a decentralized self-custodial platform that operates 24/7, allowing traders to go long or short crypto assets using leverage with no expiration date.

The popularity of this model has increased due to increased regulation of centralized exchanges, significant improvements in DEX execution and user experience that mimic centralized exchanges, the rise of a hyper-financialized trading culture, and a revenue meta where projects directly generate value through fees and token buybacks.

A recent CoinGecko report highlighted the rapid increase in persistent DEX activity compared to centralized platforms. According to the data, the DEX to CEX PERP ratio rose from 2.1% at the beginning of 2023 to 11.7% by November 2025.

CoinGecko also revealed that the DEX to CEX perps volume ratio increased month-on-month for the 14th consecutive month in November.

This momentum is further reflected in trading volumes. Perpetual DEX activity in October reached a record high of $903.56 billion, more than 10 times the same period last year.

“This is primarily driven by the emergence of new PERP DEX players, particularly Hyperliquid, Lighter, and edgeX, which have outperformed early incumbents. For example, Hyperliquid alone has recorded $2.74 trillion in PERP volume so far this year, which is on par with Coinbase and more than the other top PERP DEXs combined,” Yuqian, Research Analyst at CoinGecko Lim wrote in November.

According to the latest data from DefiLama, Hyperliquid, Aster, and Lighter maintain their lead as the top three perpetual DEXs by trading volume.

Perp DEX vs. CEX: Which model really wins?

The rapid expansion of on-chain alternatives raises important questions. Does this trend indicate a permanent structural change or simply a temporary reaction to market conditions?

According to Usi Zade, this growth reflects an evolution in trader behavior rather than a complete paradigm shift. He added that current data shows that centralized exchanges still firmly control derivatives flows. Our core strengths of deep liquidity and institutional trust remain intact.

“For this to be a structural evolution, PERP DEXs need both sustained liquidity and the participation of market-making experts. If DEXs are also capital efficient, the gap with CEX execution will narrow,” he said.

When asked if perpetual DEXs have any advantages over centralized exchanges, Usi Zade highlighted transparency as a key differentiator. He explained that these platforms allow users to view positions, collateral and liquidation mechanisms in real time.

Usi Zade also emphasized that transparency is becoming increasingly non-negotiable for traders, especially those who have witnessed or experienced currency failures firsthand.

“The centralized exchange model has a hard time keeping up with such a level of responsibility. Unless we change the way CEX custody and risk management works, there will be no DEX replication,” the executive commented.

Beyond transparency, Usi Zade also pointed to permissionless access as an area where DEXs hold an advantage. However, he stressed that centralized exchanges operate within a strict regulatory framework that prioritizes compliance and user protection.

Additionally, he pointed out that on-chain access is another reason why traders are attracted to PERP DEX, as it allows them to pass identity verification without geo-restrictions or account restrictions. These capabilities will be required during periods of increased regulation.

Although the benefits are significant, there are still areas where decentralized exchanges lag. Usi Zade pointed out that liquidity concentration and execution quality remain the most important challenges for DEXs.

Although decentralized platforms are experiencing strong growth, they still operate on small capital bases. Therefore, this can impact funding rates, funding depth, and overall market durability.

He said there are limits to risk management due to DEX's strict clearing system.

“Centralized exchanges, on the other hand, have the ability to intervene, hone or suspend clearing as part of a broader security policy,” an executive told BeInCrypto.

Finally, Usi Zade pointed out that on-chain derivatives trading requires more capital and often has implicit costs compared to centralized platforms. According to him,

“For us fast-moving strategists, this is not ideal.”

Perp DEX attracts traders, but financial institutions remain unmoved

Meanwhile, the MEXC COO said the industry has yet to see a widespread shift from institutional customers to decentralized platforms. Instead, DEXs are increasingly positioning themselves as an alternative.

He elaborated that more sophisticated traders maintain on-chain exposure as a hedge against regulatory and counterparty risks. Nevertheless, centralized exchanges remain the go-to place for traders for core liquidity, leverage, and execution.

Additionally, Usi Zade suggested that most on-chain derivatives traders fall into the semi-professional category as they understand the terminology. For medium-sized accounts, self-custody provides additional comfort.

However, these traders typically do not deploy institutional-level strategies, making them a natural fit for decentralized platforms.

Beyond this semi-professional segment, traders tend to use Purp DEX selectively, targeting specific instruments for diversification and arbitrage. However, these platforms are rarely treated as primary execution venues, reinforcing the continued central role of centralized exchanges.

“For now, decentralized derivatives need to ensure predictability with deep liquidity and operational support. Until then, the transition will be more incremental rather than transformational,” he said.

Perp DEX and CEX Outlook in 2026

Finally, in 2026, the executive predicts that decentralized and centralized derivatives platforms will continue to coexist. However, each caters to different needs of traders.

“If a platform can understand and balance the two, that’s a win,” he said.

Usi Zade said this equilibrium is expected to reach a range of 15-20% by the end of the year. He believes 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 predicted that the market is likely to move towards further hybridization, with a better connection between transparency through improved user experience and the deep liquidity that centralized platforms have traditionally provided.

“The risk we need to be aware of is fragmentation, where liquidity is spread across multiple venues and chains, creating inefficiencies,” Ushi Zade acknowledged.

Overall, perpetual DEXs are gaining relevance but are not replacing centralized exchanges. Instead, both models are evolving in parallel, with on-chain platforms expanding their role alongside CEX, suggesting a more hybrid derivatives space.

Perp DEX is growing rapidly, but is it really threatening CEX? The post MEXC COO Description appeared first on BeInCrypto.