Decentralized exchanges (DEXs) like Hyperliquid are popular among retail traders and quants, while institutions still prefer centralized platforms. Retail users are attracted by airdrop cultures, while quants appreciate low fees and programmable strategies. The execution quality gap between DEXs and CEXs is narrowing quickly.

Hyperliquid offers CEX-speed trading with onchain transparency, running on its own chain with sub-second finality and no gas fees per trade. Competitors like Aster on BNB Chain are gaining traction, with Aster surpassing Hyperliquid in daily perp volume. BNB and Solana-based DEXs are experiencing significant growth.

However, DEXs face risks like validator centralization and faulty oracles. Aster recently reimbursed traders after a glitch caused a price spike in its Plasma (XPL) perpetual market. Despite challenges, Elkaleh believes DEXs and CEXs will coexist in the future, with hybrid models blending the strengths of both for a balanced ecosystem.

Read more at Cointelegraph: Retail and Quants Boost DEX Adoption as Institutions Stick With CEXs