EDITORIAL | Centralized Exchanges Are Moving On-Chain – Here is Why This is No Longer Optional

Protocols like HyperliquidX - a fully on-chain perpetuals DEX - are no longer just “alternatives” to Binance or Bybit. They’re taking real market share. On some days, they even surpass major CEXs in volume for specific markets.

CryptoGuru··3 min read

The future of crypto trading is unfolding before our eyes – and it’s happening on-chain.

Coinbase, Binance, and Bybit – three of the world’s largest centralized exchanges (CEXs) – are no longer simply watching DeFi from the sidelines. They’re entering the arena with serious intent, building on-chain infrastructure, and competing for liquidity in a market where decentralization is becoming the default.

But this isn’t just experimentation. It’s a response to something deeper happening in the crypto economy: the center of gravity is shifting. On-chain is no longer a playground for degens – it’s becoming the base layer for the Internet Capital Market.

 

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TL;DR:

  • Coinbase, Binance, and Bybit are rolling out major on-chain features.
  • Hyperliquid and other DeFi-native venues are stealing market share through better execution and deeper liquidity.
  • CEXes are adapting, not dying—they’re becoming infrastructure players in the on-chain economy.
  • For builders and traders, the on-chain shift is no longer optional—it’s the future.

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The CEX-On-Chain Shift

Each major CEX is carving out its place in the on-chain future:

  • Coinbase has launched DeFi routing through its app, letting users access liquidity across protocols directly from the interface they trust. It’s also backing KYC-verified DeFi pools, enabling institutional capital to enter permissioned DeFi ecosystems – effectively blending regulatory compliance with on-chain composability.

  • Binance introduced the “Alpha Zone”, a curated token discovery layer offering pre-spot listing access across Ethereum, Solana, and BNB Chain. Think of it as a decentralized testnet for token relevance, allowing users to engage with early-stage assets while Binance collects data and volume before they ever go mainstream.

  • Bybit has combined RFQ (Request for Quote) pricing with CLMMs (Concentrated Liquidity Market Makers) on Solana. This hybrid model offers CEX-grade trade execution on-chain, plus sticky vaults that incentivize capital to stay parked—pushing capital efficiency up and friction down.

 

Why Now?

Two words: Hyperliquid volumes.

Protocols like HyperliquidX – a fully on-chain perpetuals DEX – are no longer just “alternatives” to Binance or Bybit. They’re taking real market share. On some days, they even surpass major CEXs in volume for specific markets.

This isn’t a blip. It’s a structural shift in how liquidity forms, how markets price assets, and where traders go for the best execution.

 

Price discovery is migrating on-chain.

 

And CEXs can’t afford to miss it.

See also

They’re no longer the gatekeepers – they’re becoming bridges.

 

What This Means for Builders and Traders

The implications are clear:

  • For builders: If your protocol isn’t on-chain – or isn’t composable within the emerging on-chain liquidity web – it risks irrelevance. As the market moves to trustless infrastructure, surface area for integrations will define survival.
  • For traders: The best execution, deepest liquidity, and fastest market reflexes are increasingly found on-chain. Being CEX-native alone is no longer enough.

 

We’re witnessing the collapse of CeFi walls from the inside. Centralized exchanges aren’t being disrupted – they’re transforming. The distinction between DeFi and CeFi is blurring, fast.

 

 

 

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