In October 2025, decentralized exchanges (DEXs) achieved a monumental milestone by processing a record $1.36 trillion in trading volume. This unprecedented figure highlights a significant shift in the cryptocurrency market, as traders increasingly prefer decentralized platforms over traditional centralized exchanges (CEXs).
### Record Volume Driven by On-Chain Trading Growth
According to data from DeFiLlama, the total trading volume of perpetual decentralized exchanges surpassed $1.36 trillion in October, surpassing the previous high of $759 billion recorded in August. This milestone reflects a broader trend of growth in on-chain trading, fueled by investors’ demand for more transparent and secure asset management.
Leading the surge were platforms such as Hyperliquid, Lighter, and Aster. Hyperliquid, a Layer-1 blockchain platform, stood out by processing approximately $299 billion, making it the largest contributor to the volume increase. The rise in DEX trading activity is mainly driven by traders seeking better transparency and lower fees compared to centralized alternatives.
### Forced Liquidations Fuel Record Trading Activity
While the growing preference for decentralized exchanges played a major role, October’s market conditions also contributed significantly to the volume spike. Volatility sparked by U.S. President Donald Trump’s comments on potential tariffs against China triggered a wave of forced liquidations in leveraged crypto positions.
An estimated $20 billion in forced liquidations across the cryptocurrency market intensified trading activity, causing sharp sell-offs and lower prices. These turbulent conditions created numerous trading opportunities, which both DEXs and centralized platforms capitalized on. CoinShares reported that this volatility event also helped push regulated crypto investment products, such as exchange-traded funds (ETFs), to a record weekly trading volume exceeding $53 billion.
### The Ongoing Shift From Centralized to Decentralized Exchanges
The surge in decentralized exchange activity is part of a broader trend moving away from centralized platforms. Over recent years, scandals and regulatory challenges impacting major CEXs have driven traders to prefer alternatives that provide better control over their assets.
More investors view DEXs as safer options since these platforms allow users to retain custody of their funds, mitigating risks associated with centralized exchanges. Reflecting this shift, the market share of DEXs in spot trading volume has more than doubled within a year—from under 10% to over 20% in 2025.
This growing confidence in decentralized finance is also supported by continuous platform improvements, including enhanced user interfaces and incentive programs such as airdrops and rewards points, which increasingly attract retail traders.
### DEXs Gain Market Share Amid Regulatory Pressures
The rise in DEX trading volumes is closely linked to heightened regulatory scrutiny impacting centralized exchanges. Concerns over security and transparency have pushed many investors toward decentralized platforms, which offer greater transparency and autonomy.
As the market evolves, decentralized exchanges are expected to continue expanding their influence. The ongoing transition toward on-chain finance represents a long-term trend, with investors prioritizing platforms that deliver enhanced security, transparency, and control over their funds.
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The record-breaking volume achieved by DEXs in October 2025 underscores the accelerating shift in the cryptocurrency ecosystem. With growing market confidence and regulatory challenges facing centralized platforms, decentralized exchanges are poised to become the backbone of future digital asset trading.
https://coincentral.com/dex-trading-volume-hits-record-1-36-trillion-as-investors-move-away-from-cexs/
