CZ Sees AI-Powered DEXs Overtaking CEXs in Trade Volume

Decentralized exchanges (DEXs) are gaining momentum as a viable alternative to centralized exchanges (CEXs), with industry leaders, including Changpeng Zhao, founder of Binance, expressing optimism about their future dominance in trading volumes. Speaking at the BNB Day event in Tokyo, Zhao highlighted the potential for DEX volumes to surpass those of CEXs, citing the growing adoption of decentralized finance (DeFi) and the increasing integration of artificial intelligence (AI) in trading systems [1].

Zhao emphasized the role of AI in the evolution of crypto trading, stating that if he were to start anew, he would develop an AI-driven trading agent and a privacy-preserving decentralized exchange [2]. His vision aligns with the broader industry trend of leveraging AI for automated and efficient trading strategies, while also ensuring privacy and security for users. The recent success of platforms like Hyperliquid, which has outperformed several major CEXs in trading volume, supports this trajectory [2].

Real-world assets (RWAs) are also emerging as a critical growth area in the DeFi space. Zhao acknowledged the untapped potential of RWAs, particularly in the form of securities, treasuries, and commodities, though he also noted that regulatory challenges, KYC requirements, and liquidity constraints remain significant obstacles. Despite these hurdles, BNB Chain has already begun investing heavily in RWA initiatives, partnering with issuers such as Securitize and Backed to facilitate innovation in the sector [1]. The integration of RWAs into DeFi could enhance the legitimacy and utility of decentralized platforms, further driving their adoption [3].

In addition to AI and RWAs, stablecoins are playing an increasingly pivotal role in the crypto landscape. Zhao observed that stablecoin activity on BNB Chain has nearly doubled in the current year, signaling a shift in user behavior and a growing demand for stable, less-volatile digital assets [1]. As more traditional financial institutions and institutional investors look to crypto as part of their asset allocations, stablecoins are likely to serve as a bridge between conventional and decentralized finance [3].

The structural advantages of DEXs—particularly self-custody and transparency—have contributed to their rising popularity, especially in light of recent regulatory scrutiny and trust issues surrounding CEXs. Data from Q2 2025 reveals a 25% increase in DEX spot trading volume compared to the previous quarter, while CEX volume declined by nearly 28%. This trend is expected to accelerate as DEXs continue to improve in terms of scalability, liquidity, and user experience [3]. PancakeSwap, for example, saw a 539% surge in trading activity during the same period, representing nearly half of all DEX transactions [3].

Looking ahead, the future of crypto trading appears to be increasingly decentralized. Zhao’s comments reflect a broader industry consensus that DEXs are not only a supplement to CEXs but are poised to become a dominant force in the space. As DeFi continues to evolve, with innovations such as decentralized perpetuals and synthetic assets, the lines between traditional and decentralized finance are expected to blur. With regulatory clarity, technological advancements, and a shift in user preferences, DEXs are well-positioned to redefine the global crypto trading landscape [3].

Source:

[1] CZ at BNB Day Japan: 5 Years of BNB Chain and What ... (https://www.bnbchain.org/en/blog/cz-at-bnb-day-japan-5-years-of-bnb-chain-and-what-comes-next)

[2] Binance's Changpeng Zhao Bets on AI Crypto Trading ... (https://coingape.com/binance-changpeng-zhao-bets-on-dexs-future-with-ai-integration-after-hyperliquid-success/)

[3] CZ Predicts DEX Trading Volumes Will Surpass CEXs In ... (https://financefeeds.com/cz-predicts-dex-trading-volumes-will-surpass-cexs-in-the-future/)