DEX-to-CEX Ratio Definition

The DEX-to-CEX ratio shows how much crypto trading happens on decentralized exchanges compared with centralized exchanges over a given period, usually a month. It is often used to track whether activity is shifting on-chain or staying on centralized platforms. In short: DEX volume ÷ CEX volume, commonly expressed as a percentage.

How it is calculated

Data providers total up reported volumes from a basket of major DEXs and CEXs, then divide monthly DEX volume by monthly CEX volume. Using monthly windows helps smooth out daily swings and makes trends easier to read. An example from the definition source: if DEXs handle 100 billion dollars in a month while CEXs handle 900 billion, the ratio is about 11.1 percent.

What the ratio signals

A higher ratio hints that more trading is happening on DEXs, which can reflect user interest in self-custody, permissionless access, and tokens that may not be listed on big centralized platforms. A lower ratio suggests that trading remains concentrated on custodial venues with order books and fiat ramps.

Factors that move the ratio

• More interest in privacy and self-custody tends to lift DEX share.
• Better liquidity and smoother DEX interfaces can pull activity on-chain.
• Regulatory pressure or outages at large CEXs can push traders to try DEXs, while high network fees can nudge them back to CEXs.

How traders and analysts use it

Market watchers track the ratio to gauge adoption of on-chain trading and to spot structural shifts. Rising DEX share can suggest growing comfort with smart-contract platforms and non-custodial wallets; falling share can indicate the opposite or a preference for deeper centralized order books.

Strengths and limitations

Strengths: the metric is simple, comparable across time, and highlights big directional changes in where trading happens. Limitations: coverage depends on which exchanges are counted and on the quality of reported volumes. The ratio also mixes many drivers at once, so it should be read alongside other indicators like network fees and liquidity depth.

Recent context

Reporting in mid-2025 noted the ratio reaching a new high above 30 percent in early June 2025, reflecting heavier on-chain activity and improvements in DEX liquidity and tooling. The commentary tied this rise to stronger DEX infrastructure and user interest in self-custody.