Deribit, Bitget CEOs debate how decentralized and centralized exchanges can coexist
Quick Take Decentralized exchange volumes reached $300 billion in November, surpassing the previous cycle’s high of $260 billion set in May 2021. Panelists at The Block’s Emergence conference discussed how crypto and TradFi are merging and what can be expected as they get closer together.

With the launch of crypto ETFs in the U.S. this year, traditional finance (TradFi) and crypto have never been closer. Panelists at The Block’s debut conference, Emergence , on Dec. 6 discussed how the two worlds are merging and what can be expected as they become increasingly intertwined.
Decentralized exchange (DEX) volumes reached $300 billion in November, surpassing the previous cycle's high of $260 billion set in May 2021, according to The Block Research. The DEX to CEX ratio continues its upward trajectory, reaching 11% in November, up from 9.3% at the start of 2024 and from 0.04% in early 2020.
Decentralized exchanges, while still relatively small in terms of market share, are growing, but can they coexist with centralized exchanges (CEXs) and other distribution platforms? Enclave Markets CEO David Wells asked the panel how they see these roads converging over the next few years.
Bitget CEO Gracy Chen emphasized that CEXs and DEXs target distinct customer bases, suggesting their coexistence will depend on serving complementary niches.
“Centralized exchanges have better liquidity, customer service, and the whole user experience,” Chen explained, making them attractive to retail and institutional clients. On the other hand, DEXs cater more to professional DeFi enthusiasts who seek tokens unavailable on CEX platforms.
Chen acknowledged that the regulatory landscape significantly shapes market dynamics, especially for smaller players. “It’s probably still gonna be the bigger ones becoming bigger [and] the smaller ones will just die out. Like, fade away gradually,” she predicted.
She also said Bitget is considering strategic partnerships to enter new markets, including the U.S.
“Now we are rethinking whether we can enter the market through a JV, through a joint venture with someone who has lots of licenses, and then we also acquire some banks to like more like new banks, rather than very traditional HSBC or Bank of America kind of big banks,” she said.
'There will be a massive shift'
Deribit CEO Luuk Strijers expressed skepticism about the sustainability of many platforms due to regulatory pressures.
“I think a lot of them will stop existing,” Strijers argued. “So to put it more binary, I think the regulatory frameworks will step up globally and will make a lot of the current massive list of platforms simply no longer feasible, either because operation costs will be too high, or because the regulators will simply shut them down.”
Strijers predicted that only a select few platforms will thrive as the industry matures.
“If you want to serve as clients on a global scale, institutions, but perhaps more importantly, retail, the regulatory frameworks are already quite strict, and it will only get more and more strict,” he said. “So in the end, there’s simply not enough trading to make them all sustainable, so there will be a massive shift, I think, and a focus on the top.”
Alain Kunz, Head of European Business Development at GSR, provided insights into the interplay between liquidity dynamics and regulation.
“In a more optimal world, liquidity attracts liquidity. So you would have one player, best case, smart contracts, which every kind of value can be exchanged. But that’s probably not going to happen,” Kunz said.
He emphasized DeFi's challenges in scaling up for institutional adoption, particularly in Europe.
“In Europe, most banks or regulated trading firms need to be able to intervene with the counterparty, who they trade with,” he said. “And if you just go to Uniswap and trade, it's very hard to interface and identify who you trade with.”
He suggested a regulatory shift to focus on activities rather than entities. “You provide some kind of activity, and you regulate that,” he said.
Uniswap maintained its position as the market leader with 40% of total volume in November, while Raydium emerged as a strong competitor, capturing 18% of the market share. Raydium's substantial contribution was partly driven by memecoin trading activity and graduated pump.fun projects, according to The Block Research.
With regulatory scrutiny intensifying and institutional interest growing, the crypto trading landscape is set for a significant evolution. The overarching consensus from the Emergence panel was clear: centralized and decentralized exchanges are likely to coexist, but only the most secure and user-focused platforms will thrive.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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