Decentralized exchanges are rapidly reshaping the perpetual futures market, with new data showing that DEXs are gaining ground at a pace few expected. According to CoinGecko, the ratio of DEX-to-CEX perps trading volume jumped from just 2.1% in January 2023 to 11.7% in November 2025 — a record high and a clear signal of shifting trader preferences.

On-Chain Derivatives See Breakout Growth

For nearly a decade, centralized exchanges dominated perpetual futures trading. That grip, however, is weakening. After two years of stagnation below 3%, DEX momentum began accelerating in early 2025, powered by liquidity improvements, better user experiences, and rising distrust in custodial platforms.

By late 2025, decentralized platforms were handling nearly 12% of global perps volume. A standout driver is Hyperliquid, which recorded an astonishing $2.74 trillion in trading volume this year — illustrating how on-chain engines can now compete with high-performance CEX order books.

Why Traders Are Migrating On-Chain

Several catalysts underpin this shift:

• Reduced custody risk and full wallet control
• Faster settlement and competitive execution
• Institutional-ready trading environments
• The collapse of several major CEXs in recent years
• Scaling advancements on Ethereum and alternative chains

Modern DEXs like Hyperliquid, Aevo, dYdX, and Vertex have shown that traders no longer need to choose between speed and decentralization.

A Lasting Market Restructure

Importantly, the trend appears structural — not cyclical. From mid-2024 through late-2025, DEX perps volume climbed consistently month after month. Analysts now project decentralized platforms could capture 15–20% of global perps trading as early as 2026, a scenario once considered far-fetched in a CEX-dominated world.

The message is clear: DEXs aren’t just catching up — they’re redefining the competitive landscape for derivatives trading.

XRP is entering one of its most intriguing phases of 2025 as exchange balances plunge more than 45% in just two months—a shift on-chain analysts say could fuel a strong bullish breakout.

Fresh data from Glassnode shows XRP exchange holdings have fallen from 3.95 billion tokens on September 21 to just 2.6 billion by late November. This sharp reduction suggests more holders are choosing self-custody over keeping assets on centralized exchanges, tightening available supply and potentially amplifying future price movements.

Whales Accelerate the Supply Shock

The drop is visible in Glassnode’s latest charts, where XRP’s 7-day SMA balance has been in steady decline while price action continues to fluctuate. With roughly $1.3 billion worth of XRP now moved off exchanges at current pricing, the trend points toward deliberate accumulation rather than panic selling.

Analysts say whale buyers are driving the shift. Large holders appear to be absorbing sell pressure during market dips, signaling renewed confidence in XRP’s cross-border payments use case and Ripple’s expanding global network.

Binance Reserve Decline Deepens Liquidity Tightening

Adding fuel to the trend, XRP reserves on Binance—its largest trading venue—have dropped by roughly $640 million. This deepens the supply squeeze across the broader market and suggests that accumulation is not limited to retail participants.

Momentum is also supported by major regulatory wins. Ripple’s largely favorable outcome in its long-running SEC dispute has restored institutional confidence. Meanwhile, new spot XRP ETF filings by heavyweight firms like BlackRock and Fidelity have injected further optimism, mirroring excitement seen during Bitcoin’s ETF timeline.

Regulation, ETFs, and Ledger Activity Strengthen the Bullish Case

Historically, steep declines in on-exchange supply have preceded major price expansions—XRP’s 2017 rally being a prime example. While macro factors such as Federal Reserve policy remain important variables, the fundamental picture is strengthening.

XRP Ledger activity is up 30% month-over-month, and analysts believe that if exchange outflows continue at this pace, XRP could reasonably challenge the $1 mark in the near term.

For now, the market seems to be sending one clear signal: reduced liquid supply means increased potential energy for the next significant move.

Japan is preparing for one of its most significant crypto regulatory shifts in more than a decade, as the Financial Services Agency (FSA) considers reclassifying crypto assets from “payment instruments” to “financial products.” The move comes amid soaring adoption — with crypto accounts quadrupling to 13 million in five years — and growing concerns over fraud, cybercrime, and inadequate consumer protections.

During the FSA’s sixth crypto working group meeting on Nov. 26, officials highlighted an average of 350 monthly consumer complaints, rising overseas scam activity, and increasingly sophisticated attacks targeting Japanese users.

Why Japan Wants to Shift Crypto Under Securities Law

If approved, oversight would move from the Payment Services Act (PSA) to the stricter Financial Instruments and Exchange Act (FIEA). This would introduce more rigorous disclosure rules, insider-trading safeguards, criminal penalties, and enhanced reporting obligations for exchanges.

Several industry voices argue the change is overdue.
Emeritus Professor Yoshikazu Yamaoki noted that tokens like Bitcoin and Ethereum no longer behave like payment tools but instead mirror speculative investment assets — similar to securities.

Others warn the shift could burden small exchanges and accelerate consolidation, as FIEA-level compliance requirements are significantly heavier.

Tax Reform: The Turning Point

The working group also supports a flat 20% tax on crypto gains, matching stock trading. Currently, crypto income is taxed as miscellaneous earnings — ranging from 15% to 55%.

Industry advocates say aligning taxes with equities could help Japan catch up with global crypto adoption.
ANAP Holdings CEO Rintaro Kawai argues the country is already “significantly behind” and risks having “no future” in Bitcoin innovation without meaningful reform.

A Fragmented Framework That Can’t Keep Up

Japan pioneered early crypto regulation, but years of piecemeal amendments — from Mt. Gox reforms to 2022’s stablecoin laws — have resulted in an inconsistent legal structure. Whitepapers require no formal accuracy standards, and self-regulation by the JVCEA remains weaker than traditional securities oversight frameworks.

Regulators now believe only a full transition to securities-style supervision can restore market integrity.