Derivatives trading on decentralized exchanges (DEXs) is forecast to more than double this year as more investors opt for cheaper and more liquid alternatives to centralized platforms.
According to the dYdX “Annual Ecosystem Report 2024,” DEX derivatives volumes grew 132% last year to reach a record $1.5 trillion. Perpetual DEX volumes were valued at $81 billion in January before skyrocketing to $242 billion by December.
Assuming the same growth rate, dYdX expects total DEX volumes to reach $3.48 trillion in 2025.
DEXs have also become a popular venue for spot trading, more than doubling their spot market share from 9% to 20%, the report said.
While surging DEX volumes are a reflection of the crypto bull market, these platforms also attract users due to their low transaction fees and greater access to more speculative assets.
For example, DEX trading volumes on Solana have skyrocketed due to the memecoin frenzy. In early January, daily trading volumes on Solana-based DEXs exceeded Ethereum and Base combined.
US reporting requirements could push more users toward DEXs in the short term
Despite the inauguration of the pro-crypto Trump administration, certain reporting requirements affecting centralized exchanges in the United States may compel more traders to opt for DEXs.
Beginning this year, the US Internal Revenue Service will require centralized exchanges and other brokers to report digital asset transactions. The reporting rules will expand to DEXs in 2027.
While the IRS said this rule should help investors “file accurate tax returns” on their crypto, some industry participants view it as an overreach.
There’s a “real risk of pushing users toward decentralized platforms like Uniswap or PancakeSwap,” government blockchain expert Anndy Lian told Cointelegraph.
“While decentralized systems currently pose challenges for tax enforcement, advancements in blockchain analytics and potential regulatory developments by 2027 could change this landscape,” said Lian.
The IRS’ reporting rules have faced heavy opposition from the crypto industry, with the Blockchain Association suing the tax agency in December. According to the lawsuit, the IRS has overstepped its statutory authority and has violated the Administrative Procedure Act.
Source: https://cointelegraph.com/news/dex-derivatives-market-forecast-double-2025-dydx
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.