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      Decentralized Exchanges Gain Market Share Over Centralized Rivals, Says Ethena Founder

      Guy Young, founder of Ethena Labs, has highlighted the growing efficiency of decentralized exchanges (DEXs) as a key factor in their increasing market share compared to centralized exchanges (CEXs). Speaking on the Hivemind podcast in October 2026, Young outlined that DEXs outperform their centralized counterparts in execution, custody, and economic structure, making them more appealing to traders and developers alike.

      Young emphasized that DEXs allow users to maintain control of their assets through smart contracts, contrasting with CEXs where users must trust the platform to hold their funds. This shift towards decentralized trading is reflected in data showing that DEXs captured a record 25% of global spot trading volume in May 2025, equating to over $410 billion in trades. As of Q2 2026, the trading ratio of the top 10 DEXs to CEXs remained strong at approximately 23.5%.

      The rise of DEXs has been fueled by the popularity of memecoins, which often launch on-chain before being listed on centralized platforms, prompting traders to seek out DEXs for early access. Additionally, advancements in wallet technology and a growing desire to minimize reliance on trust-based intermediaries have contributed to this trend. Young noted that on-chain activity across networks like Solana and Base has provided traders with efficient and cost-effective trading options.

      Ethena's own product, the USDe synthetic dollar, relies on access to both DEX and CEX venues for its delta-neutral hedging strategy. While USDe's supply peaked at nearly $15 billion in 2025, it has since decreased to approximately $4.9 billion as of late September or early October 2026, reflecting the dynamic nature of the cryptocurrency trading landscape.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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