CandleFocus

Market trends indicate DEXs have replaced VC markets for token price discovery, while CEXs continue to serve as exit liquidity

Author: Content Editor
Tokens recently listed on Binance are not performing well compared to the rest of the crypto market, indicating that price movements are being discovered on decentralized exchanges. However, traders are using centralized platforms to exit liquidity. Pudgy Penguins (PENGU) and ChainGPT (CGPT) are the only recent launches that have not crashed since their listing on Binance. Other tokens like Simon’s Cat (CAT) and Magic Eden’s native token ME have experienced significant drops. The analyst Ignas believes this shift is positive for the market as decentralized exchanges are now for price discovery and centralized exchanges are for exit liquidity. The predominance of "smart money" traders on decentralized exchanges is contributing to this change. Having exit liquidity streams, such as centralized exchanges, is considered healthy for the market. Decentralized exchanges registered a new all-time high monthly trading volume, surpassing previous records. The ratio of spot trading volume between DEXs and CEXs in January shows that DEXs have traded 16% of the total spot volume, but it is too early to determine how this ratio will change in the remaining weeks of the month.

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